Short-term power-price volatility in Europe is approaching 2022 energy-crisis
levels, creating heightened profit opportunities for battery storage operators.
Energy-market disruptions linked to the Iran war have pushed natural gas to near
four-year highs; when gas-fired plants are dispatched, electricity prices spike.
Simultaneously, rapid expansion of wind and solar is producing deeper intraday
price troughs, widening daily high-low spreads. About $40 bln of investment in
European battery storage since the last crisis has materially expanded capacity,
positioning the fleet to arbitrage these spreads this winter — a test of whether
storage can cap spikes and reduce consumer bills. Drax commercial chief Paul
Sheffield said colder weather and unpredictable wind have intensified intraday
volatility, improving market conditions for battery storage.
