Grid-scale batteries in ERCOT may be losing their energy capacity at a median rate of 7% every 365 cycles. This could indicate that battery degradation is occurring twice as fast as expected.
The more a battery degrades, the less energy it is capable of storing - limiting its activity in the wholesale energy market. This reduces the battery’s revenue-generating potential.
Why could batteries be degrading faster than expected? And how can owners and operators model it into their plans?
This analysis uses publicly available data from ERCOT to evaluate the impact of degradation on individual grid-scale batteries. The data covers operations from January 2020 to June 2025, for sites that came online before 2024.
Modo Energy subscribers can read the full analysis to learn:
- Which batteries show signs of higher degradation.
- Why these assets may be degrading faster than expected.
- And how asset owners can apply these insights when modeling their own sites.
For any questions on the analysis, reach out to the author at ovais@modoenergy.com.
Why batteries may be degrading twice as fast as expected
Metered energy exports suggest that batteries may be degrading at an accelerated rate of 7% every 365 cycles.
