Battery energy storage systems revenues surge

Battery energy storage system (BESS) revenues have surged over the past year thanks mainly to the introduction of a new tool by the system operator.

Data compiled by Cornwall Insight shows average BESS revenues have quadrupled with the rise largely attributed to the introduction of the quick reserve frequency management tool. Tight system margins were also a factor in the increased revenues.

The tool ensures system stability by getting batteries to rapidly ramp up or down energy use within one minute.

However, the report said although quick reserve has provided a valuable additional revenue source for batteries in recent months the trend may not continue given the current pipeline of new battery capacity due to come online.