In February 2025, average annualised battery energy storage revenues in the NEM were $107k/MW/year, 2% higher than in January. However, each state had significant changes in battery revenues. Queensland battery revenues were only a quarter of what they were in January, while South Australia battery revenues more than tripled.
This article looks at what contributed to changes in battery earnings in February.
Executive Summary
- NEM-wide battery revenues averaged $107k/MW/year in February 2025 — up 2% from January, but still 46% below February 2024.
- A record 94% of battery revenues came from energy trading, as FCAS contributions dropped further due to lower contingency prices.
- As in January, energy price volatility continues to drive earnings, which significantly vary between states.
- Price spikes in South Australia led to batteries in the state earning 171% of the revenue of batteries in the rest of the NEM.
In this article, we refer to the Modo Energy NEM battery index, which represents the average revenues (including marginal loss factors) earned by batteries within the NEM across a period of time. The average is weighted and normalised by a battery’s rated power, and may be annualised. All currency figures quoted are in Australian dollars (AUD).
The index and this article cover merchant revenues, defined as revenues from the NEM’s publicly traded wholesale energy and FCAS markets. Batteries may have other revenue sources, such as government contracts and power purchasing agreements.
NEM-wide battery revenues increased by 2% from January
Merchant grid-scale battery revenues in the NEM averaged $107k/MW/year in February 2025. This is a 2% increase from January and 46% below the same month in 2024.