Batteries currently participate in the wholesale arbitrage and FCAS services (contingency and regulation). However, a lack of clarity in policies and regulations specific to batteries create uncertainties for investors. The key challenge is to determine and capture all possible battery value streams (current and future services). Stacked value streams increase the possibility of a positive return in battery investments.
Overall, although there are concerns over market saturation, the battery investment case still has an upside, depending on the future market requirements and emerging network constraints.
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