ERCOT Ancillary Service clearing prices fell to an all-time low of $1.93/MW/h in September 2024, marking the fourth time prices dipped below $4/MW/h since late 2023.
Despite a 1 GW increase in battery capacity since March, the share of Ancillary Service awards to batteries has plateaued at around 56% of total procurement.
With declining Ancillary Service revenues, battery operators are shifting toward Energy arbitrage, which made up 35% of BESS revenues in July 2024—the highest since April.

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

How NPRR 1186 and ERCOT’s procurement strategies have influenced battery participation in Ancillary Services.
Why battery offer prices are now significantly lower than other generation types, especially during peak-priced hours.
Whether continued buildout will push even more batteries out of Ancillary Services and into wholesale market trading.

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

Introduction

In September 2024, Ancillary Service clearing prices in ERCOT averaged just $1.93/MW/h. This is the lowest they’ve been, across a month, since battery energy storage systems entered the market.

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ERCOT: Are Ancillary Services now saturated with battery energy storage?

ERCOT: Are Ancillary Services now saturated with battery energy storage?

Executive Summary

Introduction

Q1 2026 Australia Workshops: Five key takeaways for BESS

Constraints in Great Britain: Scottish wind curtailment and what it means for BESS

Italy's capacity market: Terna’s proposal tilts the balance from batteries to gas

​February 2026 NEM battery revenues fell to $54k/MW/year, the lowest level in two years

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February 2026 NEM battery revenues fell to $54k/MW/year, the lowest level in two years