ERCOT battery energy storage systems earned $65k/MW in April 2024

Battery energy storage systems in ERCOT earned around $65,000/MW (annualized) on average in April.
Revenues were 26% higher than at the same time last year.
However, Ancillary Service revenues actually fell overall - with that increase coming from Energy arbitrage earnings.
In April 2024, battery energy storage systems earned 41% of their revenues from Energy markets.
This is part of an ongoing trend - 33% of battery revenues came from Energy arbitrage in the first four months of 2024, compared with just 15% in the first four months of 2023.
In fact, in April, the proportion of overall battery energy storage revenues from Regulation services hit its lowest-ever monthly level - just 14%.
Longer-duration battery energy storage systems (1.5+ hours) earned 60% of their revenues from Energy arbitrage.
Whereas shorter-duration batteries earned just 28% of their revenues from Energy.
And, on average, two-hour systems earned 44% higher revenues than one-hour batteries in April.
Due to the 60-day lag in ERCOT publishing its market disclosure data, we only have confirmed battery energy storage revenues for January through April.
However, with Modo Energy’s ERCOT BESS Index “nowcast”, you can benchmark your performance all the way up to the present.
This year, there were no repeats of the price spikes that occurred in late June 2023.
Because of this, cumulative battery revenues fell behind their equivalent 2023 numbers for the first time since Winter Storm Heather (in January).
With milder temperatures expected this summer (relative to last year), and NPRR 1224 likely to prevent some wholesale price spikes, average battery revenues are unlikely to hit the record-breaking highs set last year.
However, current six-monthly revenues of around $40,000/MW for 2024 so far are very healthy - with plenty of high revenue opportunities still to come in the peak summer months.
And, as April proved, the most lucrative strategies and systems will likely prove more than capable of exceeding last year’s Index number.
Want more details about April revenues? Stuff like:
▪ Which operational strategies were most lucrative in April.
▪ Which specific battery energy storage systems outperformed the Index.
▪ And howw the portfolios of ERCOT’s largest battery owners compared.
Modo's ERCOT subscribers can read Avery Dekshenieks' latest monthly Index roundup now.
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