Why are GB batteries capturing more BM value in 2023?
BESS BM participation pre 2023 has been very low. But BESS dispatch volumes in the BM have risen significantly this year. What is driving the increase?
- Bid Offer Acceptance (BOA) volumes for BESS in the BM have historically averaged in the 1-2 GWh per month range (i.e. very low)
- BESS BOA volumes have increased steadily in 2023, rising to 10-18 GWh per month across Summer 2023, an at least 5x increase (see chart)
- Both BM & Within-Day value capture opportunities for BESS are being supported by increasing RES driven price volatility e.g. greater prevalence of negative prices.
- BM value capture also reflects:
- 1. higher volumes of BESS coming online in 2023 and
- 2. an increase in BESS optimiser focus on the BM e.g. as the value of alternative ancillary & NIV chasing strategies erode
- Going forwards National Grid’s Open Balancing Platform reforms are set to further support BESS BM value capture
We have a special focus section on drivers of increasing BESS BM value capture in our latest GB BESS subscription service report just released. Contact email@example.com if you’re interested in more information and a sample report.