How higher gas prices boosted European BESS revenues in March
European gas prices rose strongly in early March, driven by escalating conflict in Iran and the Gulf affecting Qatari LNG supply. As longer-term disruption to supply became clearer through the month, prices stayed elevated.
Even at the beginning of the month, it looked like higher gas prices would increase battery economics in the short term. At the end of the month, it’s time to take stock.
In GB, revenues rose 69% in March compared to February, mostly driven by higher gas prices. Across Europe, the mechanism was the same: wider top-bottom (TB) spreads and higher ancillary service prices. The size of the effect, however, varies substantially by country.
