09 May 2024
Brandt Vermillion

ERCOT: Battery energy storage revenues in six charts (Apr 29th - May 5th)

With the 60-day lag in ERCOT’s market disclosure data, staying up to date with battery energy storage revenues can feel impossible. However, there are still ways to assess recent opportunities for batteries.

Across last week - April 29th to May 5th, inclusive - we’ve provisionally estimated battery revenues of $149/MW/day. (Equivalent to around $54,000/MW annualized.)

Estimated battery energy storage revenues in ERCOT - April 29th to May 5th 2024

This is a 36% decrease in revenues from the previous two weeks. But where did these estimated revenues come from?

Grid conditions and battery energy storage output

A week of relatively high wind and low solar generation meant that Real-Time prices stayed low. They peaked at $195/MWh on the evening of the 29th - less than one-tenth of the $2,000+/MWh prices seen on April 16th and April 28th.

Due to these healthy grid conditions and lower prices, battery energy storage systems performed fewer cycles. Net storage output hit 1 GW just twice. Battery discharge peaked at 1,389 MW on the evening of May 2nd - in contrast, it topped 1,400 MW seven times during the previous two weeks.

Revenue opportunities for battery energy storage systems

In terms of revenue opportunities, average daily Real-Time price spreads across the week were down 73% - to $51/MWh. And there were some significant locational advantages. Real-Time spreads in the West Hub were consistently larger than those in the South.

Day-Ahead spreads throughout the week were 10x larger, on average, than Real-Time spreads - peaking at $489/MWh on May 2nd.

Clearing prices in the ERCOT Contingency Reserve Service (ECRS) and Non-Spinning Reserve were broadly in line with those available Day-Ahead spreads.

They were also around 3x higher than prices in Regulation Up and Response Reserve (RRS) - the Ancillary Services most dominated by battery energy storage. This could be a sign that saturation is beginning to bite in those services.

Battery energy storage revenue opportunities in ERCOT - Ancillary Service clearing prices, April 29th to May 5th 2024

This disparity between Ancillary Service clearing prices and Real-Time opportunities helps to explain why a large proportion of estimated revenues came from AS last week.

Check out our previous roundups of energy storage revenue opportunities

Note: Due to the 60-day lag in ERCOT publishing its market disclosure data, the revenue figures provided here are provisional estimates and subject to change. Readers are advised that these estimates should not be relied upon for making financial or investment decisions - as actual revenues may differ.

To see the latest exploration of confirmed battery revenues, head to our January/February 2024 breakdown.

Want to keep track of battery revenues in ERCOT?

At Modo Energy, we provide insights on battery energy storage in ERCOT - so that you can make decisions faster and with confidence.

At a glance, you can use the ERCOT BESS Index to:

  • track the performance of battery energy storage systems in the market,
  • understand the different services contributing to revenues,
  • and identify market trends and volatile periods.
Imrith, Modo’s ERCOT product manager, walks you through the ERCOT BESS Index.

Benchmark asset performance against the rest of the market. Understand the best operational monetization strategies. And help inform decision-making, with insights focused entirely on battery market operations.

Head here to find out more about how Modo’s benchmarking tools can supercharge your workflows.

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