Battery revenues surge in Spain and Poland as Europe sees mixed results

French consultancy Clean Horizon has updated its battery profitability index, an indicator of potential revenues, providing monthly estimates for potential BESS markets across Europe based on two-hour systems.

The latest analysis highlights the growing dependence of BESS profitability on the combination of price spreads in day-ahead and intraday markets and revenues from ancillary and balancing services.

Spain was among the fastest-growing markets in July. Revenues for two-hour and four-hour batteries increased to €477,000 ($552,350)/MW/year and €650,000/MW/year, respectively, up 90% from June. Clean Horizon attributed the increase to a sharp rise in revenues from the day-ahead and continuous intraday markets in July 2026, together with wider accessible spreads in the manual frequency restoration reserve (mFRR) market.

Portugal recorded a similar trend, with revenues for two-hour and four-hour batteries increasing by around 50%. The improvement was linked to greater wholesale price volatility in both Portugal and Spain. The accessible day-ahead spread increased 13% to €145/MWh, while available revenues from the continuous intraday market rose 68% from June.

In France, revenues increased 44.9% month on month to €410,000/MW/year. The main driver was a 64.8% increase in capacity prices for automatic frequency restoration reserve (aFRR), accompanied by a 15.6% increase in day-ahead energy price spreads.

Italy recorded significant differences between its bidding zones. In the southern SUD zone, BESS revenues reached €450,000/MW/year in July 2026, with day-ahead and intraday markets making particularly strong contributions. In the northern NORD zone, average revenues for a four-hour battery stood at €165,000/MW/year, driven mainly by the MB market.

Poland recorded the highest revenues among the published two-hour battery index values, rising 10% month on month to €581,800/MW/year. The intraday market was the main driver of growth, with available revenues increasing 75%, enough to offset lower revenues from the day-ahead and capacity markets. The average day-ahead market spread fell 20% to €180/MWh, while upward capacity prices in the aFRR and mFRR markets declined and lower contracted mFRR volumes further reduced revenues.

The trend was reversed in several northern and central European markets. In Belgium, revenues for a four-hour battery fell to €259,000/MW/year, down 23.8% from the previous month. The decline was driven by a broad reduction in energy prices, with aFRR energy, imbalance and day-ahead prices all falling by around 30%.

In Germany, lower day-ahead market volatility and falling aFRR reserve prices reduced revenues across all storage configurations by between 10% and 16%. The spread for a one-hour battery fell 23%, while the average upward aFRR reserve price declined from €15/MW/h to €10/MW/h.

The Baltic states also recorded sharp declines. In Estonia, two-hour battery index revenues fell 46% to €175,000/MW/year. Average aFRR capacity prices declined 47% and mFRR prices fell 65%, alongside lower day-ahead market volatility.

In Latvia, revenues fell 24% to €338,000/MW/year for the two-hour index. aFRR capacity prices declined 12%, while mFRR prices fell 32%. In Lithuania, revenues decreased 30% to €302,000/MW/year, with aFRR capacity prices falling 10% and mFRR prices dropping 32%, alongside lower day-ahead market volatility.

In Finland, BESS revenues across all durations also declined because of lower day-ahead market volatility. Although spreads remained high in the aFRR and mFRR energy activation markets, low activation volumes did not offset the loss of opportunities in the wholesale market. In capacity markets, the fast frequency reserve (FFR) service recorded activations at high prices.

Denmark recorded differing trends between its two electricity zones, but greater intraday volatility associated with solar PV generation helped keep overall results stable compared with June.

Romania recorded an average decline of between 10% and 15% in revenues for two-hour and four-hour batteries. Revenues for a four-hour battery stood at €404,000/MW/year, amid a 30% decline in the day-ahead market spread.

Sweden ended July with a 20% decline in two-hour battery revenues to €126,000/MW/year. According to Clean Horizon, the decline was associated with a 30% reduction in FCR and mFRR capacity prices.

From pv magazine España