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UK BESS revenues fall to lowest level ever in December, says Modo

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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.

To see the full version of this article go to Current.

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

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