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

UK battery revenues fall to lowest level ever in December 2023

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.

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