To date, the investment landscape in battery energy storage systems (BESS) in ERCOT has been dominated by one or two-hour systems.
However, this could change in the coming years. With declining capital expenditure costs for battery projects and a shift toward Energy arbitrage as the primary revenue stream, the investment case of four-hour duration batteries may be becoming more attractive to investors.
This article lays out the investment case for four-hour batteries in ERCOT today. Costs and revenues are constantly shifting, and market conditions may be moving in a direction that favors longer durations. Some developers are already making the move, as evidenced by some longer-duration resources entering the ERCOT Interconnection Queue.
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