Battery energy storage revenues in Great Britain increased by 9% to £52k/MW/year in January 2026, up from £48k/MW/year in December. A surge in Balancing Mechanism earnings led the recovery as batteries delivered record amounts of balancing energy. Despite the uptick, revenues were still 44% lower than January 2025 and among the lowest seen in the past year.

A brief period of volatility in early January faded quickly, replaced by high prices and tight spreads similar to December 2025.

Modo Energy Research subscribers will also find in this article:

• A detailed breakdown of revenue changes by service
• Reasons why wholesale revenues hit a three-year low
• Balancing Mechanism dispatch trends and system-flagged volumes
• Movements in Frequency Response and Quick Reserve prices
• Downloadable data for all charts

Balancing Mechanism revenues offset wholesale decline

Batteries earned £52k/MW/year in January 2026, a modest recovery from December's 18-month low but still 25% below the 2025 average. A £6.4k/MW/year boost in Balancing Mechanism revenues more than made up for a £2.1k/MW/year drop in wholesale earnings. Frequency response and reserve changes were minor and largely offset each other.

Wholesale Markets

Wholesale revenues fall 29% to three-year low

Wholesale arbitrage revenues dropped 29% to £5.1k/MW/year in January, down from £7.2k/MW/year in December. This is the lowest wholesale result since early 2023. While compressed spreads played a part, the main factor was batteries shifting exports to other markets.