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MarketsDepartment of Market Monitoring 2023 Special Report on Battery Storage posted
The California ISO Department of Market Monitoring (DMM) has posted the 2023 Special Report on Battery Storage, providing analysis of battery resource participation and performance in the ISO market and the Western Energy Imbalance Market (WEIM) during 2023. Key findings of this analysis include the following:
- Battery storage capacity grew from about 500 MW in 2020 to 11,200 MW in June 2024 in the ISO balancing area.
- The Western Energy Imbalance Market (WEIM) includes about 3,500 MW of participating battery capacity as of June 2024.
- Batteries account for a significant portion of energy and capacity during the late afternoon and early evening when net loads are highest.
- Batteries account for a significant portion of load during peak solar hours.
- Net market revenue for batteries decreased from about $103/kW-yr in 2022 to $78/kW-yr in 2023.
- Bid cost recovery payments for batteries increased by 16 percent in 2023 and these payments represent 7 percent of batteries’ total net market revenues.
- DMM continues to find that a significant portion of battery capacity used to meet resource adequacy requirements is unavailable to the market in some hours during tight system conditions.
The Department of Market Monitoring provided similar analysis of the participation and performance of storage resources in the 2022 Special Report on Battery Storage.
Information related to market monitoring is available on the Market Monitoring webpage.
Contact information
For questions, please contact Ryan Kurlinski at rkurlinski@caiso.com or Department of Market Monitoring at (916) 351-2174, DMM@caiso.com.