Resource Adequacy contracts provide over half the revenue for most battery energy storage systems in California today.

But these contracts are privately negotiated bilateral arrangements - it’s not always clear how much resources are earning, or how new contracts should be priced.

And with the “Slice-of-Day” change to the RA program, the way batteries participate in the program is undergoing a major shift.

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 how the value for new capacity contracts is expected to evolve in the years ahead.

Readers can access the data behind each chart, including a database for all battery capacity contracts active in California. Find the link at the bottom of the article.

This article discusses how much capacity contracts contribute to grid-scale battery energy storage revenues in CAISO. 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: