The European Union’s new power pricing structure, with prices set every 15 minutes instead of hourly, has increased potential profits for battery storage systems (BESS) by over 15% in some countries. Countries like Austria and Slovakia saw gains of over 20%, while others like Portugal, Norway, and Sweden saw minor improvements. This shift allows BESS operators to buy electricity when it’s cheap and sell it when prices rise, resulting in an average 14% increase in arbitrage potential across European power markets.

Moving from hourly to 15-minute trading intervals in Europe’s day-ahead electricity market has proven to be more profitable, with quarter-hour arbitrage in countries like Lithuania and Germany earning 14% and 16% more, respectively, than hourly trading. These shorter intervals capture quick shifts in electricity prices, creating more opportunities for flexible assets.

While the transition to 15-minute markets has increased arbitrage profits in Europe, price volatility remains unpredictable. For example, Australia’s switch to 5-minute markets has consistently increased arbitrage profits, with states like New South Wales and Victoria seeing 20% and 15% higher revenues, respectively. However, factors like efficiency losses, system availability, and market liquidity will impact real-world arbitrage revenues on day-ahead markets.

Read more at Yahoo Finance.: The New Power Rules Driving Europe’s Battery Storage Boom