Executive Summary
- Total battery capacity in Great Britain reached 4.7 GW by the end of 2024, with 1 GW of new capacity coming online, marking a shift toward longer-duration batteries—67% of new installations had a two-hour duration.
- Battery revenues more than doubled from their early-year lows, rising from £36.6k/MW/year in January to £83.7k/MW/year in December, driven by wind generation fluctuations and increasing Balancing Mechanism participation.
- New market entrants and services reshaped the revenue landscape, with 12 new battery owners and eight new optimizers entering the market, alongside the introduction of Quick Reserve and Balancing Reserve services.
Subscribers to Modo Energy’s Research will also find out:
- How Balancing Mechanism updates increased battery dispatch volumes and revenues, hitting record highs in December.
- The impact of 176 hours of negative power prices and why 2025 is forecasted to exceed 200 hours.
- Key policy and regulatory changes, including updates to the Capacity Market de-rating factors and the Clean Power 2030 initiative.
To get full access to Modo Energy’s Research, book a call with a member of the team today.
Introduction
2024 was a pivotal year for battery energy storage in Great Britain. Batteries began the year with their lowest revenues on record and ended with their highest revenues in two years.
It followed 2023, a year where buildout reached record highs and frequency response services saturated, leading to an evolved revenue stack. In 2024, batteries were utilized more than ever in high-energy services such as wholesale trading and the Balancing Mechanism.
New services, systems, and operational strategies emerged. New players entered the market, and batteries continued to grow in capacity.