​Battery revenues in the Wholesale Electricity Market (WEM) rose to $184.1k/MW/year in October, up 3.7 times from September. Four existing batteries began receiving Reserve Capacity payments as the 2026-27 Capacity Year started, increasing capacity revenue contributions.

Lower evening prices narrowed two-hour spreads for a fourth month, reducing the merchant opportunity available to batteries. Within that smaller opportunity, lower charging cost lifted merchant revenue, turning three of Synergy’s batteries merchant-positive.

Alinta Energy’s Wagerup battery also began operating and joined the Index in October. All seven batteries in the fleet now receive Reserve Capacity payments, which accounted for 91% of October revenue.

This article examines WEM battery revenues for October 2026, including market conditions, generation mix, price spreads, FCESS prices, fleet growth and revenue by battery. Figures use Modo Energy’s ME BESS AUS WEM index. Read September’s WEM battery revenue report here.

Executive summary

• Capacity Credits lifted WEM battery revenues to $184.1k/MW/year. All seven batteries in the fleet now receive Reserve Capacity payments.
• Wagerup began operating and joined the Index. The Alinta Energy battery expanded the Index fleet to 1,485 MW.
• Lower evening prices reduced the merchant opportunity. Two-hour spreads narrowed for a fourth month, leaving less value available per cycle.
• Cheaper charging lifted merchant revenue for a third month. Synergy charged less at high prices, turning three of its four batteries merchant-positive.

Lower evening prices reduced the value available from trading

Softer demand reduced evening prices in October, which narrowed the arbitrage opportunity for batteries. Higher rooftop solar output also lowered daytime prices, but the reduction in evening value outweighed the benefit of cheaper charging.