Battery energy storage capacity in the NEM is increasing rapidly, with new systems coming online across every mainland region. But as the fleet grows, so does the challenge of maximising value from each asset. Owners and developers face a critical question: who is doing the best job of optimising battery performance?

Not all batteries are created equal, and the value available to individual systems can vary significantly. This makes it difficult to compare the performance of batteries and optimisers directly.

This report introduces a new methodology to benchmark battery optimisation in the NEM. This methodology adjusts for the effects of location, contracts, and availability to focus on what optimisers can control. We then apply this to detail which batteries are earning the most value, which optimisers are leading the pack, and what project owners can do to maximise value.

The report is split into two parts, providing the following:

• Part 1 - The methodology used in measuring performance between assets;
• Part 2 - Analysis of the results, including a breakdown of asset and optimiser performance.

Executive summary

• Battery revenue performance in the NEM varies significantly - some systems captured more than double the value of others.
• A new "adjusted capture rate" methodology helps isolate optimiser performance by controlling for factors outside their control, like availability, constraints, and MLFs.
• Batteries with merchant or incentive-aligned contracts (e.g. revenue share) consistently outperform those with longer-term fixed revenues.
• Third-party ‘autobidder’ providers support optimisation of the top individual battery performers, but also have systems that underdeliver.
• Optimisation strategy, contract design, and availability are critical to maximising NEM battery value.

Part 1: The methodology

The adjusted capture rate attempts to adjust for the impact of factors outside the control of the optimiser. Those factors broadly fit into two categories: locational impacts from marginal loss factors and constraints, and availability impacts due to contracts or technical faults.