Market analytics firm Modo Energy recorded the lowest average revenue levels to-date for UK BESS projects in December 2023, the firm said.
Average revenue for Balancing Mechanism-registered battery energy storage system (BESS) projects fell by 16% month-on-month in December 2023, to £2.5k/MW (US$3.2k/MW).
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The firm confirmed that the fall was a continuation of frequency response revenues falling since the launch of the enduring auction capability, a mechanism designed to help deliver co-optimised procurement for day-ahead frequency response and reserve products, in November.
Interestingly, Modo’s research indicates that assets over 1.5 hours in duration earned around £3.3k/MW on average, whereas assets under 1.5 hours saw revenues of around £2.1k/MW.
This caps off what could be seen as a stutter in UK BESS market, with average revenue levels for batteries having dropped by 67% year-on-year (YoY) to £51k/MW.
Energy-Storage.news explored the falling revenues and the implications of this for the UK BESS market in a Premium article in October 2023.
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