Since ERCOT launched its Contingency Reserve Service or ECRS in June of last year, batteries that have been commercially operational since the launch have earned 28% of their revenues from the service. This is in spite of the fact that those batteries only allocated around 3% of their annual capacity to ECRS. The seven sites that earn more than 50% of their revenues from ECRS averaged total revenues of $308/kW. This outperformed the index of $206/kW by 50%.

During this same period, battery energy storage systems in ERCOT averaged 0.72 cycles per day. However, these seven ECRS focused batteries averaged only 0.44 cycles per day. On a per-cycle basis, the ECRS-focused batteries earned roughly $1,700/MW/cycle on average. This is more than double the average ERCOT battery which earned roughly $780/MW/cycle.

However, much of this outperformance occurred last summer when ECRS had just launched and was undersubscribed, leading to higher clearing prices than other ancillary services. Additionally, as more batteries come online and participate in the market, Ancillary Services continue to become saturated, pushing prices down. Read the full article now to learn more about how battery revenues have evolved in the twelve months since the launch of ECRS.

#BatteryEnergyStorage #ERCOT #RenewableEnergy #PowerMarkets

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