In May, average battery revenues in Great Britain dropped 33% to £39k/MW/year, following two consecutive months of growth. However, one system implemented new strategies to earn over £70k/MW/year.
In April we updated our index to include Capacity Market revenues to provide a complete picture of total battery revenues.
So, what drove the 33% reduction in revenues in May?
Revenues fell across all income streams, but frequency response was hit the hardest
In May, revenues fell in every market batteries operate in. The largest reduction occurred in frequency response, with total revenues from frequency response services decreasing from £16k/MW/year to £5k/MW/year.
Wholesale market revenues fell 23% to £13k/MW/year, while reduced Balancing Mechanism activity resulted in a 12% revenue decline.
High dynamic frequency response prices near record lows
Falling clearing prices in the three high-frequency response services drove most of the 65% reduction in frequency response revenue.
Dynamic Containment High, the largest frequency response service, saw a 45% reduction in clearing prices in May. This, alongside a 10% fall in Dynamic Containment Low prices, resulted in a £6k/MW/year reduction in revenue from the service.
Meanwhile, Dynamic Moderation and Regulation High prices dropped to -£0.21/MW/h and-£5.75/MW/h, respectively, their second-lowest monthly average ever.