Energy storage systems are emerging as essential assets in ERCOT to seamlessly integrate renewable energy, ensure grid reliability and resiliency, and to cost-effectively meet increasing peak demand. With the future shift to energy applications such as energy arbitrage and ERCOT policy changes supporting resource adequacy underway, developers and asset owners should rethink the shorter duration paradigm that was the norm in ERCOT for BESS. Through comprehensive revenue simulations, Stem has demonstrated that a 2-hour BESS can increase cash flows relative to a 1-hour system – with at least 15% improvements in the internal rate of returns (IRR) in each major zone of ERCOT.
We invite you to join us as we dive into ERCOT’s energy storage economics and the case for a 2-hour battery. Our agenda will cover:
Stem’s revenue simulation results favoring a 2-hour BESS relative to 1-hour
BESS optimization analytics and state-of-the-art revenue simulation process utilized by Stem
Review of the ERCOT Contingency Reserve Service (ECRS), the newest ancillary service deployed by ERCOT
Preliminary analysis of ECRS prices and insights gleaned
Notable policy changes underway that will support longer duration BESS