Market Mechanisms: Revenue Streams for Storage
Understanding how energy storage generates revenue through various market participation mechanisms
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Section 4 of 5The Revenue Landscape
Energy storage revenue comes from multiple market mechanisms, each with different requirements and compensation structures. From real-time energy arbitrage to long-term capacity contracts, storage can participate in various markets simultaneously, creating diversified revenue streams.
Different storage technologies excel in different markets. Fast-responding batteries are ideal for frequency regulation, while long-duration storage can provide capacity during extended peak periods. Understanding which markets your technology can serve is crucial for project economics.
Market Stacking
Many storage systems can participate in multiple markets simultaneously, stacking revenues from energy, ancillary services, and capacity markets for maximum financial returns.
Interactive Market Participation Simulator
Explore how different storage systems can generate revenue across various energy markets
Storage System Parameters
Available Markets
Energy Arbitrage
Buy low, sell high during price fluctuations
Capacity Market
Payments for available capacity during peak periods
Frequency Regulation
Maintain grid frequency within tight tolerances
Operating Reserves
Standby capacity for grid emergencies
Renewable Integration
Support renewable energy integration and firming
Demand Response
Reduce peak demand through strategic discharge