At Denki, we're transforming battery storage participation in Romania's energy market with our intelligent platform, empowering traders with essential tools to maximize returns through energy arbitrage and grid services—starting with proven results in our home market.
As we establish our capabilities, our technology will evolve toward automation, with AI assistants gradually taking on more complex trading decisions, enabling battery operators to scale efficiently while addressing the growing demands of Romania's renewable energy transition.
This week, nearly 60 million people across Spain and Portugal experienced one of Europe's most extensive power outages in recent history. The blackout, which began at 12:33 CEST on April 28 and lasted around ten hours in most areas, caused widespread disruption to critical infrastructure and daily life.
As battery energy storage system (BESS) specialists, we've been closely analyzing the technical aspects of this event. The blackout offers critical lessons about grid resilience and highlights the increasingly important role that battery storage can play in preventing such catastrophic failures.
According to Red Eléctrica de España (REE), Spain's grid operator, two distinct "disconnection events" occurred in the southwestern peninsular region, separated by just 1.5 seconds. While the system absorbed the first event, the second triggered a systemic collapse, leading to an automatic protective disconnection from the European grid.
The most revealing technical detail: within just five minutes (from 12:30 to 12:35), solar PV generation plummeted from over 18 GW to just 8 GW. This rapid loss of generation—coupled with insufficient grid inertia—created conditions where the system couldn't maintain stability.
To understand why this happened, we need to look at one of the most critical parameters in any power grid: frequency.
In the European grid, the standard frequency is 50Hz. This frequency must be maintained within extremely tight tolerances (typically ±0.2Hz) for the system to remain stable. When generation exceeds consumption, frequency rises; when consumption exceeds generation, frequency falls.
What happened in the Iberian Peninsula was a severe case of frequency deviation due to sudden generation loss. With solar PV accounting for 59% of Spain's generation mix at the moment of failure, the system lacked sufficient inertia—the stabilizing energy present in rotating masses of traditional generators—to prevent a rapid frequency collapse.
Conventional power plants (nuclear, gas, coal) provide natural grid inertia through their massive rotating generators. When disturbances occur, these rotating masses act as energy reservoirs that can momentarily compensate for imbalances, slowing the rate of frequency change.
As grids transition to higher percentages of renewable energy—particularly inverter-based resources like solar PV—this natural inertia decreases. Without adequate technological substitutes, the grid becomes more vulnerable to rapid frequency fluctuations. This is precisely what energy experts call the "Rate of Change of Frequency" (ROCOF) problem.
In the case of the Iberian blackout, when solar generation suddenly dropped by 10 GW, the ROCOF was likely too high for conventional stabilizing systems to compensate, triggering cascading failures.
Battery energy storage systems like those deployed by Denki are uniquely positioned to address these vulnerability factors in several critical ways:
Modern battery systems can detect frequency deviations and respond in milliseconds—far faster than conventional power plants:
When grid frequency starts to drop, batteries can instantly discharge power
When frequency rises, batteries can absorb excess energy
This capability creates a powerful buffer against rapid frequency changes
Advanced inverter technologies allow batteries to provide "synthetic inertia" or "grid-forming" capabilities that mimic the stability benefits of conventional generators without their environmental downsides:
Grid-forming inverters create a voltage reference for surrounding equipment
They can operate autonomously during grid disturbances
They maintain stability during rapid transitions in generation
Beyond the technical capabilities, batteries can participate in balancing markets—economic mechanisms designed to maintain the generation-consumption equilibrium:
Day-ahead markets allow for planning energy dispatch
Intraday markets enable adjustments as conditions change
Fast frequency response markets specifically value rapid stabilization services
Romania's energy market structure, with its day-ahead and balancing market mechanisms, provides an excellent framework for battery storage deployment as a grid stability solution. With the right market design and technical requirements, battery storage can:
Provide primary frequency response within milliseconds
Offer a more cost-effective alternative to maintaining spinning reserves
Create revenue opportunities through balancing market participation
Support greater renewable energy integration without compromising reliability
The Romanian Transmission System Operator (TSO) Transelectrica has already been exploring enhanced services for frequency regulation, creating a promising environment for advanced battery solutions.
At Denki, our battery energy storage platform is specifically designed to address these grid stability challenges through several key features:
Ultra-Fast Response: Our battery management algorithms can detect frequency deviations and respond in under 100 milliseconds
Grid-Forming Capabilities: Our inverter technologies provide synthetic inertia for enhanced stability
Automated Market Participation: Our software continuously analyzes market conditions and automatically positions battery assets for optimal grid support and revenue generation
Frequency Regulation Focus: Our control systems prioritize grid stability services, particularly in markets where these services are properly valued
Denki is currently a startup at a pivotal stage of development. We are actively engaging with investors who share our vision of grid stability and clean energy integration. Our team is focused on building a minimum viable product (MVP) that demonstrates the power of automated balancing services in the Romanian energy market.
This MVP, scheduled for completion in 2025, will showcase our automated battery control system's ability to:
Monitor grid frequency in real-time
Execute rapid response protocols during frequency deviations
Interface with energy market platforms for automated trading
Optimize battery operation for both grid stability and financial returns
The Iberian blackout serves as a critical wake-up call for European grid operators. As we transition to cleaner energy systems, we must simultaneously invest in technologies that maintain or enhance grid stability.
Battery energy storage represents one of the most versatile and effective solutions to this challenge. By combining the rapid response capabilities of modern batteries with sophisticated control systems and market awareness, we can create energy systems that are both cleaner and more resilient.
In Romania and beyond, Denki is committed to developing and deploying these advanced battery solutions, helping to ensure that the clean energy transition enhances rather than compromises grid reliability.
Want to learn more about how Denki's battery storage solutions can enhance grid stability and participate in energy markets? Contact our team for a detailed consultation.