“We thought CAISO, it’s not the same level of volatility (as ERCOT). It has this daily duck curve that batteries can charge and discharge,” explains Miller, who authored the report. “We thought, well, maybe it’s just an easier market for batteries to make money in, and there’s kind of less going on here.”
However, the data showed otherwise.
“The big takeaway was the variation in dollar earned per-kW figures,” Miller says. “It’s just a very dispersed performance.”
Static bidding strategies
The analysis found that many battery operators use static bidding strategies that remain unchanged for extended periods, rather than adapting to market conditions.
