Resource Adequacy contracts provide over half the revenue for most battery energy storage systems in California today, making them fundamental to grid-scale battery investments. However, these contracts are privately negotiated bilateral agreements, so it’s not always clear how much resources are earning—or how new contracts should be priced. And with the “Slice-of-Day” changes to the RA program, the way batteries participate in the program is undergoing a major change.
Subscribers to Modo Energy’s research can read this report to understand:
- How much revenue batteries earn from their Resource Adequacy contracts today, and why contract prices have risen by 75% over the past five years,
- Why the new “Slice-of-Day” reforms to the Resource Adequacy program are changing how batteries participate,
- And what the value for new capacity contracts might look like in the years ahead.
Readers can access the data behind each chart, including a database for battery capacity contracts in California. Find the link at the bottom of the article.
This article discusses how the “Slice-of-Day” changes to California’s Resource Adequacy program impact grid-scale battery energy storage revenues. To learn more about the RA program and how batteries can participate, read our previous article: Resource Adequacy: How it works, how you’re paid, and how to apply.
Key takeaways: