How will Bess evolve in 2024?

In summary, the evolution of BESS in 2024 is characterised by several key trends: a continued focus on safety, the commercialisation of non-lithium technologies, the extension of battery durations for large-scale systems, and the exploration of additional revenue streams through complex operational strategies.

How did Bess perform in Q2 & 3?

However German BESS assets have seen a sharp revenue stack recovery across Q2-Q3, with revenues back above 150€/kW/yr levels in Q3. This recovery has been supported by strong intraday market volatility and real-time aFRR energy prices.

Will shell pay the owners a fixed fee for Bess?

Shell will pay the owners a fixed fee for the BESS and keep all the upside. It may be the first tolling deal of this size for a single asset, but the first major UK tolling deal announced in the UK was by Gresham House and Octopus Energy for a 568MW portfolio of operational projects earlier this year.

How has Bess performed in the next 1-2 years?

Day-ahead price spreads capturable by 2 hour duration BESS recovered from below 40 £/MWh in Feb to around 70 £/MWh in Aug. BESS revenues have also been supported by: an increase in negative prices & intraday value capture. Gas price levels and the pace of RES penetration growth are two key drivers to watch across the next 1-2 years.

How did German Bess perform in Q1 2024?

Q1 2024 was challenging for German BESS, with achieved revenues plunging below 100 €/kW/yr as a mild winter & weak gas prices took hold, as shown in Chart 1. However German BESS assets have seen a sharp revenue stack recovery across Q2-Q3, with revenues back above 150€/kW/yr levels in Q3.

How does a Bess work?

A BESS is typically comprised of battery cells arranged into modules. These modules are connected into strings to achieve the desired DC voltage. The strings are often described as racks where the modules are installed. The collected DC outputs from the racks are routed into a 4-quadrant inverter called a Power Conversions System (PCS).