Battery revenues in Great Britain increased by 69% in March to reach £70k/MW/year. March was among the highest revenue months in the last year. Record high Balancing Mechanism revenues drove the increase as batteries continued their trend of trading between wholesale imports and Balancing Mechanism exports.

Rising gas prices, driven by escalating tensions in the Middle East, pushed wholesale spreads higher, creating the volatile conditions in which batteries thrive.

For subscribers to Modo Energy's Research, this article will also cover:

• A breakdown of revenue changes across each service
• Day-ahead and intraday spread dynamics and residual demand drivers
• Battery vs CCGT offer pricing in the Balancing Mechanism
• Frequency response and Quick Reserve price movements

Balancing Mechanism drives revenues to £70k/MW/year

The Balancing Mechanism revenues contributed a record £46k/MW/year, up from £22k in February. The £24k increase on its own exceeded February's total revenue and came close to matching the totals seen in November, December, and January.

Wholesale revenues fell further into negative territory despite rising spreads, a reflection of batteries increasingly trading between wholesale imports and Balancing Mechanism exports. Frequency response also climbed, benefiting from higher opportunity costs driven by the gas crisis. The remaining services were small movers.

Wholesale revenues

Day-ahead and intraday spreads hit 12-month highs

Average daily day-ahead spreads surged to £89/MWh in March, up from £40/MWh in February, a 123% increase and the highest level in over a year. Intraday spreads rose to £95/MWh from £54/MWh, a 76% increase and similarly a 12-month high.