BESS Are Becoming More Attractive | pv Magazine Australia
As battery energy storage system costs plunge, energy price volatility is shortening payback times for storage solutions.
This shift, driven by a surge in intermittently generating renewables, and ongoing innovations in battery manufacturing, marks a pivotal moment for energy markets worldwide.
Energy storage installations generate returns through two primary streams: merchant revenue and contracted revenue. Contracted revenue often requires reform, market creation, and government backing to come to fruition, with key examples including capacity markets and large-scale tenders.
On the other hand, merchant revenue – which does not need an energy offtaker – is organic and can develop as more price volatility becomes present in existing market structures. In recent months, merchant revenues have become more important to the energy storage market and have led to optimistic outlooks in some key regions…
Read the full story at pv Magazine Australia: https://www.pv-magazine-australia.com/2024/11/23/bess-are-becoming-more-attractive/
