​Battery energy storage revenues in Great Britain were £77k/MW/year in October, up 11% from September and 36% from the July 2025 low. Higher frequency response prices and the start of new Capacity Market contracts for delivery in 2025/26 drove the rise. Dispatch volumes in the Balancing Mechanism reached a record high, while peak demand and lower renewable energy levels drove up wholesale prices.

For subscribers to Modo Energy’s Research, this article will also cover:

• A breakdown of the change in revenues from each service
• Analysis of the impact of peak demand and renewable generation on wholesale prices
• Insights into the increasing value of Dynamic Regulation contracts
• A data download of all charts

Revenues rise for the third month in a row

Batteries in Great Britain earned £77k/MW/year in October, a 36% increase from their 2025 low in July. The increase was primarily driven by frequency response earnings, which hit £30k/MW/year, exceeding the two-year high recorded in September.

Capacity Market payments jumped by £2.7k/MW/year, as batteries entered new contracts for delivery in 2025/26.

Wholesale revenues declined 12%, despite rising energy demand as the winter season approaches. Balancing Mechanism revenues stayed relatively flat, as the volume of Bids and Offers increased by 28% each.

Wholesale Markets

Spreads reduce despite price spikes

Intra-day markets hit highs of £326/MWh on October 13 and £275/MWh on October 22, driven by rising demand and tight supply. Despite these spikes, spreads tightened. Intraday spreads fell from £92/MWh to £88/MWh, while day-ahead spreads held steady at £77/MWh.

This kept price spreads above the average for 2025, driving the strong revenues in October.

Negative pricing became less frequent, with only 20 hours of negative prices in October, down from 54 in September. This reduced the upside for wholesale arbitrage despite the price spikes.

Residual demand exceeds 30 GW

National demand grew 12% month-on-month, averaging 26 GW. Shorter, colder days lifted evening demand peaks, which averaged 33 GW - a 15% rise from September.

Wind output dropped to 12 GW on average, a 9% reduction, but residual demand - the gap between demand and renewable generation - rose 20% on average. During peak periods, it climbed 30% above September levels. On October 13th and 22nd, residual demand passed 30 GW for the first time since March, driving the month’s largest price spikes.

Balancing Mechanism

Dispatch rates spike to a record high

After a recent flatline, in-merit dispatch rates increased sharply from 11% to 18% in October. This contributed to a 28% increase in dispatched battery volume, as 227 GWh of battery energy storage was used in the Balancing Mechanism.

However, with Bids and Offers rising in tandem, the bid-to-offer ratio held steady, keeping revenues flat.