ERCOT and CAISO market trends in 2024 and successful bid optimization
ERCOT and CAISO market trends in 2024 and successful bid optimization
Battery energy storage systems (BESS) play an essential role in
balancing grids with high renewable energy. They can charge
during low price hours and discharge during high price hours in
the wholesale markets, or support grid stability participating in
the ancillary markets. It is important for BESS owners to maximise
their profit by deciding how to balance between the different
markets.
In ERCOT, battery storage revenues have dropped significantly
in the past year due to factors such as increased battery
installations, more renewable generation, and changes in how
ERCOT dispatches of the ancillary service ECRS. Despite this,
GridBeyond’s optimization software was able to outperform
competitors by up to 40% during peak market conditions of
August 2024 in ERCOT, highlighting the importance of having a
robust bidding strategy.
In this paper we examine market trends in ERCOT and CAISO
impacting power storage and what makes a successful bid
optimization strategy.