Q1 2024 was challenging for market participants with operational battery energy storage systems in Great Britain. However, there were the beginnings of improvements that point towards a brighter rest of the year.
The US utility-scale storage sector saw tremendous growth over 2022 and 2023. The volume of energy storage installations in the United States in 2022 totaled 11,976 megawatt hours (MWh)—a figure surpassed in the first three quarters of 2023 when installations hit 13,518 MWh by cumulative volume.
However, pricing more competitively has increased the number of dispatches since the introduction of bulk dispatch. Operators are now optimizing battery energy storage systems across four different markets: dynamic frequency Response, Balancing Reserve, wholesale trading, and the Balancing Mechanism.
Construction risks: It is common practice to see multiple equipment supply, construction, and installation contracts rather than one turnkey engineering, procurement, and construction (EPC) contract for energy storage projects.
Operators are now optimizing battery energy storage systems across four different markets: dynamic frequency Response, Balancing Reserve, wholesale trading, and the Balancing Mechanism. Operators can use the Balancing Mechanism in combination with other revenue streams to maximize daily revenues.
In the third quarter of 2023, and despite significant delays in the market, the US storage market added a record-setting 2,354 MW and 7,322 MWh.