Executive Summary

• Tolling agreements allow ERCOT battery owners to lease operational control to third parties in exchange for fixed payments, stabilizing revenues.
• The only operational ERCOT battery under a tolling agreement—Crossett 1—initially underperformed but later earned above the one-hour BESS Index in 2024.
• Nearly 2 GWh of battery capacity is set to operate under tolling agreements by 2026.

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

• How tolling agreements shift operational strategies and impact revenue performance.
• Why developers are increasingly considering tolls as a de-risking tool in a volatile ERCOT market.
• Which upcoming battery projects are expected to enter tolling structures and how they compare to merchant assets.

To get full access to Modo Energy’s Research, book a call with a member of the team today.

Introduction

Revenues for battery energy storage systems in ERCOT vary substantially year-to-year.

They're influenced by various factors, such as the exponential growth of battery energy storage capacity, the launch of new Ancillary Services, growth in overall load, and unpredictable weather events.

As a result, it's impossible to rely on consistent year-over-year revenues.