Battery storage optimisation in European markets
Key takeaways
- Market selection is key Countries with high shares of solar and gas, such as the Netherlands, offer the best volatility and returns. Nordic markets remain limited due to hydro flexibility.
- Intraday trading adds 30%+ value Continuous re-optimisation outperforms day-ahead-only strategies, especially in liquid markets.
- 50% SOC is the sweet spot Starting the day at 50% state of charge gives the highest annualised returns across revenue streams.
- Revenue stacking boosts value Combining wholesale, ancillary, and balancing markets yields up to EUR 352,000 per MW annually in the Dutch market.
- FCR still matters Even at lower average prices, Frequency Containment Reserve (FCR) is selected 40% of the time in stacked models.
FAQ
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A multi-market portfolio approach captures 40-60% more revenue than single-market strategies alone.
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Not yet. Low spreads and limited liquidity make it difficult to realise value from continuous intraday trading.
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Yes. Smaller systems suit FCR; larger, long-duration batteries gain more from energy arbitrage.