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The LAYR platform is designed to connect two types of market participants with complementary needs:
  • Asset owners who have invested heavily in physical BESS infrastructure and want predictable, stable returns with minimal exposure to volatile energy markets.
  • Offtakers who have the expertise, appetite, and trading algorithms to actively optimise flexible assets in real-time markets, and who want access to physical capacity without owning infrastructure.
LAYR provides the software infrastructure that enables offtakers to dispatch physical BESS assets and handles the complex reconciliation and financial settlement between parties.

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How the Swap Works in Practice

  • Offtakers manage their own market access. They actively place trades in wholesale and ancillary services markets, using their trading expertise to maximise revenue from the asset’s flexibility.
  • terralayr ensures those dispatch instructions are physically backed by an actual BESS asset. We handle the reconciliation of physical dispatch against market nominations and manage all invoicing and financial settlements between the parties.
This ensures the integrity of the swap agreement — the offtaker’s market position is always backed by real, controllable physical capacity.

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Granularity and Flexibility

What makes LAYR’s approach particularly powerful is the level of granularity it enables:
  • Partial swaps: Swap contracts can be created at the level of individual MW of power capacity and MWh of energy capacity. This means an asset owner does not have to de-risk the entire battery — they can dynamically manage risk in a much more targeted way, keeping some capacity exposed to merchant market returns.
  • Flexible durations: Swaps can cover periods from a single day to several years, catering to diverse risk appetites and market conditions.
For asset owners, this provides far more optionality than traditional all-or-nothing agreements. For offtakers, it means they can procure precisely the flexible capacity they need for specific time periods.

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Two Core Offering Types

terralayr facilitates two specific types of physically-backed BESS swap contracts:

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Virtual Battery Auctions (vBAs)

Typically short-term swaps — daily or weekly periods. Asset owners offer chunks of their capacity in an auction format, receiving an immediate, fixed payment for short-term capacity. The winning offtaker gets the rights to optimise that capacity in the energy markets for the specified period.

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Tolling Contracts

Long-term swap contracts, typically lasting five or more years. Asset owners allow a counterparty to dispatch their asset and keep the variable market revenue. In return, the asset owner receives a fixed, predictable tolling fee over the contract term.
Tolling contracts are the cornerstone of de-risking significant BESS investments. The stable, long-term cash flow they provide is exactly what banks and lenders need to see before providing debt financing for new projects. Without this kind of predictability, many BESS investments would not be financeable at all.
The ability to connect parties, provide dispatch infrastructure, handle financial reconciliation, and facilitate highly customisable swap contracts across different durations and capacities is a core part of what the LAYR platform delivers — making complex risk management arrangements straightforward and efficient for both asset owners and offtakers.
Last modified on April 20, 2026