Battery energy storage systems (BESS) play an essential role in balancing grids with high renewable energy. They can charge during low price hours and discharge during high price hours in the wholesale markets, or support grid stability participating in the ancillary markets. It is important for BESS owners to maximise their profit by deciding how to balance between the different markets.
In ERCOT, battery storage revenues have dropped significantly in the past year due to factors such as increased battery installations, more renewable generation, and changes in how ERCOT dispatches of the ancillary service ECRS. Despite this, GridBeyond’s optimization software was able to outperform competitors by up to 40% during peak market conditions of August 2024 in ERCOT, highlighting the importance of having a robust bidding strategy.
In this paper we examine market trends in ERCOT and CAISO impacting power storage and what makes a successful bid optimization strategy.
