Utility-Scale Batteries Are More Commonly Used For Price Arbitrage - CleanTechnica

A recent survey of utility-scale battery operators reveals that price arbitrage has become the most common primary use for these systems. Price arbitrage involves purchasing electricity when prices are low and selling it when prices are high, allowing battery operators to capitalize on market price fluctuations. In 2023, 66% of all utility-scale battery capacity was used for arbitrage to some extent, with 41% primarily dedicated to this function. The second most common primary use was frequency regulation—maintaining the grid’s 60 Hz frequency—which accounted for 24% of battery capacity, a shift from previous years when frequency regulation was the dominant use. Most of the U.S. utility-scale battery capacity is concentrated in the California Independent System Operator (CAISO) and the Electric Reliability Council of Texas (ERCOT) markets. As of the end of 2024, CAISO reported 11.7 gigawatts (GW) of battery capacity, with 43% primarily used for arbitrage, while ERC