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13 September 2024
Zach JenningsZach Jennings

Highest BESS revenues in GB since Oct 2023: why Balancing Mechanism was key

Executive Summary

  • On September 10th, GB battery revenues reached their highest level since October 2023, with Balancing Mechanism earnings hitting £38k/MW/year.
  • Batteries provided 1.9 GWh of upward flexibility, benefiting from wind curtailment constraints.
  • Salisbury (50 MW) was the highest-earning battery on the day - despite physically exporting no power.

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

  • How low daytime wholesale prices allowed batteries to optimize trading strategies.
  • Why Balancing Mechanism Offer reversals extended battery participation beyond physical export capacity.
  • How future constraint management changes could further impact battery dispatch and earnings.

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

Introduction

On September 10th, average revenues for battery energy storage systems in Great Britain hit their highest level since October 2023. This was helped by batteries earning their second-highest daily Balancing Mechanism revenue ever. Let’s take a look at why this happened, and which battery earned the most revenue on this day.

High Balancing Mechanism revenue combined with above-average wholesale earnings

Of the total £97k/MW/year of average earnings for the day, the Balancing Mechanism contributed £38k/MW/year. This was 7% lower than the record set on August 12th. However, this combined with wholesale revenue that was 25% higher than last month’s average to result in higher overall earnings. By contrast, wholesale revenue on August 12th was 33% lower than the yearly average.

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