Battery storage assets have a finite cycle life, with manufacturer warranties tied to specific throughput limits. To maximise lifetime value while meeting contractual obligations, operators carefully adjust their strategies, balancing daily battery cycles against short-term and long-term market opportunities.
We recently analysed how different operators utilised their batteries across the NEM in 2024. Our analysis highlights the relationship between daily cycling behaviour and intraday price spreads, demonstrating how operators strategically respond to market conditions. The results show the different strategies operators implement through the optimisation parameters of their bidding systems.
Key observations:
– Batteries primarily used for hedging portfolio exposure showed a weak correlation between price spreads and daily cycling.
– Merchant batteries typically demonstrated a strong correlation, closely tracking price volatility.
– Batteries contracted for grid support services exhibited lower cycling during contracted periods.
Every battery asset is unique, and selecting the right operation strategy directly impacts financial returns. At OptiGrid, we don’t just provide an auto-bidding platform to optimise battery revenue on a daily basis – we work closely with our partners to deliver the insights needed to maximise the total lifecycle revenue of their assets.
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