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by kieranmaine 150 days ago
Battery revenues are shifting away from stabilisation now from https://cn-cob.com/info-detail/2026-uk-energy-storage-market...:

> the focus of energy storage has shifted from frequency services to energy arbitrage. Due to market saturation, the share of frequency services in the revenue stack has significantly declined, from 80% in 2022 to just 20% in 2024. Looking ahead to 2030, we expect energy arbitrage to dominate the revenue stack, with most revenue coming from participation in the balancing mechanism.
1 comments
KaiserPro 149 days ago
Indeed, in the same way that solar has now peaked in spain/portugal in its current config. They are moving to solar+battery to absorb solar mid day and replay that in the morning/evening. (that doesn't really apply in the UK because of the rain)

As more renewables come on stream and the grid gets more complex, batteries are going to plug holes.

Energy Arbitrage is usually a good thing, so long as its regulated to for the customer, not the battery people. the point is that battery capacity is being deployed to even out the 5-9pm peak, which means that we are much much less dependent on gas turbine generators (which means less price pressure linked to LNG prices, if you're not into the co2 aspect)

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TheSpiceIsLife 149 days ago
> (which means less price pressure linked to LNG prices, if you're not into the co2 aspect)

No it doesn’t.

The arbitration is only possible because the battery storage providers can ever so slightly undercut the gas peakers.

The price pressure is still linked to the LNG price.

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KaiserPro 149 days ago
> The arbitration is only possible because the battery storage providers can ever so slightly undercut the gas peakers.

I think you underestimate the cost of running a grid battery, you need to be able to undercut significantly to make profit.

Its not like you can practically keep the battery at 98% for 7 days waiting for the right time to discharge, its not that simple.

The aim is to make as much money, but the markets you can join are regulated (in the UK)

You can be a grid stabilisation service (paid to be at % percent battery and turn on/off in milliseconds to keep the frequency from going too high or low)

You can be intra day, or day ahead. but you're not likley to be dayahead because you're rated at x Mw for n hours. The stuff that I know about in iberia is ~100-300Mw for 3 hours. Again spain is a special case because the market is peer to peer through PPA.

I digress.

The point is sure last year there wasn't really enough battery to affect peak price(in the UK), but now there is 19 gwhr. assuming its all rated for 3 hours, that around 18 % of total generating capacity for 5-8pm.

Now as there is a mix of cfd and other financial things that actually affect price, it doesn't quite work like that in the UK.

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