Investors in battery storage need to consider more sophisticated strategies to maximise revenues, according to a report which found the market has suffered a sharp fall in profits.
LCP Delta’s report said that since the unprecedented highs of 2021 and 2022, the GB market has experienced a sizeable drop in profits compared to the past two years. This has been further compounded by falling wholesale power prices and energy trading values.
It said markets such as Firm Frequency Reserve (FFR) and Dynamic Containment (DC) had become saturated.
Chris Matson, Partner at LCP Delta, said the fundamentals for battery storage remain strong but investors and asset owners will need to “refamiliarise” themselves with the landscape they are now operating within and understand potential challenges.
“As the durations of assets increase and frequency response markets saturate, sophisticated energy trading and revenue stacking will be crucial,” he said.