Previously we have examined the importance in FCAS prices for the revenue stream for batteries. With a growing interest in batteries in the market, this ‘Chart of the week’ takes a deeper look into the impact of bidding behaviour on the Regulation Raise price since 2012.
From January 2012 until September 2015, Regulation Raise prices were low, with the non-volatile component averaging around 1.9 $/MWh ($Dec 2020 real terms). A distinct increase in average Regulation Raise prices has been observed since then, with the non-volatile price averaging 24.1 $/MWh from the end of 2015 until December 2020 or 12 times the previous average. This increase in prices coincides with a step increase in the average prices in the lowest four bid stacks across the ancillary service market generators, which averaged over six times higher than previously across the same time frame.