Renewable energy production is on the rise within energy systems around the world and in the Netherlands. Battery Energy Storage Systems have the potential to mitigate the resulting variability of supply and maintain grid stability by participating in markets and providing ancillary services to grid operators. When developing energy storage projects, it is of utmost importance to understand this ecosystem of markets and services and how they relate to your project-specific business case. Doing this in an ever-changing market adds an extra layer of complexity.  

That is why Noah Sloots, Master Student Energy Science at Utrecht University, has spent the last months conducting an in-depth modelling study to assist in the continuous development of our Battery Revenue Assessment Model.

Financial viability

The research shows that MW-scale battery energy storage systems can remain financially viable in the Netherlands in the near future, but that these systems will need to shift towards alternative earning models due to the effect of competition and growing market share. As a result, wholesale markets are getting more important for the base case as ancillary services volumes are relatively limited. New markets, like congestion-based capacity contracts, are also adding to future financial viability. 

By applying our Battery Revenue Assessment model and its future price curves to ongoing projects, we are actively helping projects towards Financial Close. By doing so, we contribute to pushing forward the energy transition.