The data from Cornwall Insight’s GB Battery Revenue Forecast, shows rising wholesale prices and added price volatility, alongside renewable build out over the next few years, will lead to the rise in revenues.
Cornwall Insight's forecast shows, annual revenues for 2-hour assets are forecast to climb from approximately ~£96/kW in 2025 to ~£108/kW by 2026, representing a marked improvement. Similar growth can also be observed in our forecasts for other durations.
Looking further ahead, Cornwall Insight forecasts a slight slowdown in yearly revenues in the latter half of the decade, in line with its underlying projections for wholesale power prices, alongside a greater saturation of the battery storage market. However, these levels will be significantly higher than what is currently being achieved in the market.
This news follows initial analysis from NESO highlighting that storage capacity, including battery storage, will need to increase by up to five times current levels to help support the initial pathways to reach the Clean Power 2030 Government target. It is hoped increasing revenues will encourage the battery growth needed if the government is to have any hope of reaching it's decarbonisation target.
“After a challenging period for battery asset owners in GB, we are forecasting a recovery in battery storage revenues over the next two years” said Joe Camish, Lead Analyst at Cornwall Insight. “This will be encouraging news for investors and asset owners, signalling a more robust and sustainable future for battery storage investments for the remainder of the decade. This has been underscored by our recent modelling in which revenue levels are projected to remain above current levels, supported by greater wholesale price volatility in the late 2020s. If we are to meet the 2030 power decarbonisation target, NESO have said that storage capacity needs to increase four to fivefold. Hopefully the positive news on rising revenues will help drive the market toward achieving this goal.”
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