Grid- scale batteries in Great Britain average more than one cycle per day for the first time in Q4 of 2023. One-hour batteries were the main driver for the increase in average daily cycles.
These systems cycled 1.1 times per day, 20% more than in Q3.
By contrast, two-hour batteries cycled 5% less in Q4 than in Q3.
The reason for this change has been the shift of one -hour assets into Dynamic Regulation High towards the end of Q4. In December, one-hour battery is made up 55% of procured volume in the service compared to 40% in October.
Shorter duration systems cycle more while delivering the same amount of the service, and so this has led to an increase in overall cycling. But is this additional cycling worth it? In both Q3 and Q4, one-hour systems cycling twice per day, and an additional £11k/MW/Year compared to those cycling once per day. In Q3, this additional cycle increased revenues by 23%.
However, overall revenues have fallen since, and this means an additional cycle increased revenues by 38% in December.
This explains why some in the market decided to focus on higher cycling strategies.
Ultimately, operators will determine whether increased cycling is worthwhile, a decision dependent on warranty limitations, as well as a contractual agreement with the asset owner.
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Grid-scale batteries in Great Britain average more than one cycle per day for the first time in Q4 of 2023. One-hour batteries were the main driver for the increase in average daily cycles. These systems cycled 1.1 times per day, 20% more than in Q3. By contrast, two-hour batteries cycled 5% less in
Q4 than in Q3. The reason for this change has been the shift of one -hour assets into Dynamic Regulation High towards the end of Q4. In December, one-hour battery is made up 55% of procured volume in the service compared to 40% in October. Shorter duration systems cycle more
While delivering the same amount of the service, and so this has led to an increase in overall cycling. But is this additional cycling worth it? In both Q3 and Q4, one-hour systems cycling twice per day, and an additional £11k/MW/Year compared to those cycling once per day.
In Q3, this additional cycle increased revenues by 23%. However, overall revenues have fallen since, and this means an additional cycle increased revenues by 38% in December. This explains why some in the market decided to focus on higher cycling strategies. Ultimately, operators will determine whether increased cycling is
Worthwhile, a decision dependent on warranty limitations, as well as a contractual agreement with the asset owner. Thanks for watching. See you next time.