Who is bidding in Bess capacity?

To date, existing energy traders have been the primary participants bidding in BESS capacity. However, as discussed by Matt Grover of Fluence in his article ‘The growing NEM BESS fleet: Who is controlling all this capacity, anyway?’, by the end of CY26, 40% of BESS traders will be new entrants.

Does a Bess bid only for power quantity?

However, the BESS submits bids for power quantity only, rather than the price-quantity pair permitted by current market regulations. Additionally, the study assumes that each power quantity bid by the BESS will be fully dispatched in the market clearing process, which may not apply to all electricity markets.

What are battery energy storage systems (Bess)?

Notably, battery energy storage systems (BESS) stand out as one of the most widely used ESS in electricity markets due to their efficiency and technical advantages. However, their incorporation presents unique challenges .

How much does Bess cost?

The cost of BESS has fallen significantly over the past decade, with more precipitous drops in recent years: This is nearly a 70% reduction in three years, owing to falling battery pack prices (now as low as $60-70/kWh in China), increased deployment, and improved efficiency.

What are base year costs for utility-scale battery energy storage systems?

Base year costs for utility-scale battery energy storage systems (BESSs) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2023). The bottom-up BESS model accounts for major components, including the LIB pack, the inverter, and the balance of system (BOS) needed for the installation.

What are the limitations of Bess bidding strategies?

Another notable limitation in recent studies on BESS bidding strategies is the tendency to overlook regulation and reserve markets , , , , , , .