CAISO and ERCOT are two of the most attractive battery markets in the United States
- In CAISO, resource adequacy (RA) makes up a material part of the revenue stack and drives investment into longer duration (4+ hour) assets
- In ERCOT, we find 1-2 hour batteries to be optimal, with a shift over time from Ancillary Service revenues to a business model focused primarily on energy arbitrage
- Key risks and sensitivities include (among other things) weather, battery costs and speed of deployment, locational pricing, policy, and degradation
- Integrated modelling of energy market, ancillary service market, capacity market, and nodal price outcomes is critical for understanding battery storage project economics
Aurora’s Flexible Energy Add-On gives developers, asset owners, and investors everything they need to build and assess battery investment cases through:
- Granular forecast data – Hourly and sub-hourly energy and ancillary service prices
- Competitive analysis – review of historical battery performance for all operational assets to help analyze the competitive landscape
- Strategic analysis – regular updates of key policy impacting storage, scenario analysis, and key risks/sensitivities
- Investment cases – regular updates to 54+ standard investment cases for different project durations, locations, commissioning dates and market scenarios
Click below to download a redacted sample of the report, and we will follow up with you about the full report:
