The silver lining of ERCOT’s battery market saturation

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From ESS News

Texas’ crowded battery landscape means more developers competing for shrinking ancillary service margins.

But, according to CEO Chris McKissack of storage-only IPP Fullmark Energy (formerly Hecate Grid), that might not be a bad thing. What looks like saturation in ERCOT or other ISOs, he said, is a sign that storage is actually working.

“Markets like California and Texas are looking at the future of ancillary service saturation from battery storage projects,” he told ESS News. When people hear that phrase, he explained, it’s easy to think it will be bad for business. But, “it’s actually demonstrating how storage is contributing to the grid and what that means is that ratepayers are paying less for grid services.”

Battery energy storage systems are there to help cut down on peak pricing events, he added, which also helps ratepayers save costs while helping developers recapture revenue from those same events.

“If there are enough of us online to saturate the market, [those prices] will ultimately not be put through to the ratepayers,” McKissack added.

Read the full story on pv magazine’s ESS News

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