ERCOT battery energy storage revenues fell ~70% in 2024 compared to 2023, as market saturation, declining volatility, and weaker demand growth reduced earnings.
More than 3.1 GW of new battery capacity came online in 2024, including a number of new 200+ MW projects.
With Ancillary Services showing signs of saturation, batteries shifted to Energy arbitrage, reaching record participation - but overall price spreads flattened due to rising solar generation.

Subscribers to Modo Energy’s Research will also find out:

How increased competition among battery operators led to revenue compression across the ERCOT market.
Why stagnant demand growth and mild weather conditions played a bigger role in falling revenues than previously expected.
How shifting price peaks from midday to the evening is reshaping optimal battery dispatch strategies.

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Watch the video to get a flavor of the full report.

Introduction

As of mid-November 2024, average battery energy storage revenues in ERCOT were around 70% lower than they were at the same time last year. But what were the key trends that drove this drop-off in earnings?

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