Insights/Market Economics/

Revenue by Configuration

Revenue Opportunities

Revenue by Configuration

The revenue opportunities of a battery storage asset depend critically on its regulatory configuration. Standalone storage, EEG green storage, hybrid models and wind/solar plants have different market access — with direct implications for achievable returns.

Wind or Solar Standalone

Wind or Solar Standalone

Standalone RE asset without co-located storage

A standalone wind or solar plant without an attached battery storage generates revenues primarily through direct marketing on the spot market or fixed feed-in tariffs under EEG. Dispatch follows the generation profile — no flexibility through storage. Innovation tenders enable co-located storage to be added as a follow-on project.

Direct Marketing EEG

Revenue StreamDescription2020–20252025–20302031–2040
Direct Marketing (Market Premium)EEG market premium on top of spot market revenues — basis for assets ≥ 100 kWp~70 %~60 %~45 %
Feed-in TariffFixed EEG tariff for existing assets below the direct marketing threshold~20 %~10 %~5 %
Innovation TenderSupport for innovative RE concepts — co-location with storage eligible~10 %~30 %~50 %

Shares of total revenue — illustrative, not binding.

Direct Marketing without EEG

Revenue StreamDescription2020–20252025–20302031–2040
Day-AheadDaily spot auction for the next day — peak/off-peak spread~65 %~60 %~55 %
IntradayContinuous trading until shortly before delivery — short-term price spikes~35 %~40 %~45 %

Shares of total revenue — illustrative, not binding.

No storage revenue streams (FCR, aFRR). Revenue potential increases significantly when storage is co-located — then Green or Grey Co-Location applies.

Standalone BESS

Standalone BESS

Full market access, no charging restrictions

A pure grid-connected storage asset without co-located generation has unrestricted access to all energy markets. The asset can charge from the grid at any time — independent of generation patterns. This enables maximum cycle utilisation and optimal dispatch across FCR, aFRR, intraday and day-ahead.

Revenue StreamDescription2020–20252025–20302031–2040
FCRSymmetric frequency containment reserve — weekly auctions~55 %~35 %~20 %
aFRRAutomatic frequency restoration — availability and activation revenues~25 %~30 %~30 %
IntradayShort-term arbitrage on price spikes in continuous trading~15 %~25 %~35 %
Day-AheadPeak/off-peak spread as complement to FCR/aFRR stack~5 %~10 %~15 %

Shares of total revenue — illustrative, not binding.

Highest revenue potential per MW — regulatory constraints from FCAs and ramp-rate requirements still apply.

Green Co-Location

Green Co-Location

EEG storage — charging exclusively from co-located generation

A green storage asset under EEG regulation charges exclusively from the co-located renewable generation plant (PV or wind). This restriction limits market access: when there is no generation, no charging capacity is available. Dispatch is therefore coupled to the generation profile — with corresponding effects on participation in markets requiring continuous availability.

Revenue StreamDescription2020–20252025–20302031–2040
EEG OptimisationGeneration surpluses are buffered and marketed with revenue optimisation~40 %~35 %~30 %
IntradaySpot arbitrage within the generation window — limited charging capacity~20 %~30 %~38 %
FCRRestricted — charging capacity only available during active generation~25 %~20 %~17 %
aFRRDischarge always possible; charging only when generation is active~15 %~15 %~15 %

Shares of total revenue — illustrative, not binding.

Lower revenues than standalone due to restricted charging flexibility — may be partially offset by reduced grid fees and EEG optimisation.

Grey Co-Location

Grey Co-Location

Charging from grid and co-located generation

A hybrid grey storage asset can charge from both the grid (grey power) and the co-located generation plant. This combination enables significantly more flexible dispatch than pure green storage — while still utilising co-located generation. Grid fees apply for grid charging; the revenue structure approaches that of standalone BESS.

Revenue StreamDescription2020–20252025–20302031–2040
FCRFull participation possible — grid charging secures state of charge at all times~45 %~30 %~18 %
aFRRHigh availability through combined charging sources~22 %~28 %~27 %
IntradayArbitrage without dependency on generation window~22 %~30 %~40 %
Day-AheadPeak/off-peak spread as stack complement~11 %~12 %~15 %

Shares of total revenue — illustrative, not binding.

Higher revenue potential than Green Co-Location. Grid fees for grid charging reduce net revenue — project-specific calculation required.

Constraints & Cost Factors

FCAs — Frequency Containment Agreements

FCAs regulate the simultaneous provision of FCR and aFRR (stacking). The rules limit how much aFRR capacity a storage asset may offer while simultaneously providing FCR. Depending on the configuration, FCAs can reduce the combined revenue stack by up to −41%. Catalyst models FCAs project- and control-zone-specifically directly within the dispatch optimiser.

Ramp Rates

FCR requires full power delivery within 30 seconds of a frequency deviation. Grid connection conditions may specify maximum power gradients (MW/min) that prevent full FCR participation or limit the bid capacity. Ramp-rate restrictions are site-specific and must be verified in the grid connection agreement.

Grid Fees — Netzentgelte

Grid fees consist of energy and capacity price components and vary significantly by grid level and network operator. Relevant for storage: the capacity-based grid fee structure and the AgNes surcharge. Grey storage assets (grid charging) are generally subject to full grid fees; certain storage exemptions apply under § 118 EnWG.

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