What happens when the market is flooded with too many batteries? A mature market shows an 85% drop in revenues

The Australian market, one of the most advanced in terms of battery storage deployment, shows how quickly a battery boom can transform the promising economics of storage. The capacity of large-scale batteries in the National Electricity Market (NEM) has already exceeded 9,000 MW, doubling year on year, while the average difference between charging and discharging prices fell year on year from 342 to just 51 Australian dollars per MWh. This represents a decline of around 85%, according to a quarterly report by the Australian Energy Market Operator (AEMO). The operator also published detailed numerical statistics alongside the report (a link to download the statistics is provided at the end of the article).

The energy sectors in the Czech Republic and across Europe are on the verge of a boom in battery storage construction. A technology that for a long time saw only minimal capacity additions is becoming mainstream. In the Czech Republic, several hundred, and perhaps even low thousands, of MW of installed capacity are under construction, along with at least twice as many MWh of capacity.