Battery energy storage revenues in Great Britain rose 9% to £52k/MW/year in January 2026, up from £48k/MW/year in December. A surge in Balancing Mechanism earnings drove the rebound as batteries delivered record volumes of balancing energy. Despite the increase, revenues remained 44% lower than January 2025 and among the lowest of the past 12 months.

A brief burst of volatility in early January faded quickly, giving way to high prices and compressed spreads that mirrored December 2025.

For subscribers to Modo Energy's Research, this article will also cover:

• A breakdown of revenue changes across each service
• Why wholesale revenues hit their lowest point in three years
• Balancing Mechanism dispatch dynamics and system-flagged volumes
• Frequency Response and Quick Reserve price movements
• A data download of all charts

Balancing Mechanism revenues offset wholesale decline

Batteries earned £52k/MW/year in January 2026, a slight rebound from December's 18-month low but 25% below the 2025 average. A £6.4k/MW/year increase in Balancing Mechanism revenues more than offset a £2.1k/MW/year reduction in wholesale earnings. Frequency response and reserve changes were small and offsetting.

Wholesale Markets

Wholesale revenues fall 29% to three-year low

Wholesale arbitrage revenues fell 29% to £5.1k/MW/year in January, down from £7.2k/MW/year in December. This marks the lowest wholesale performance since early 2023. Compressed spreads contributed, but the main driver was batteries shifting exports to other markets.