ComTech Advisory announces a Market Study of Battery Analytics and Trading Solutions
ComTech Advisory is excited to announce the launch of new market research focused on battery analytics and trading solutions. This new study follows our last year research on Virtual Power Plant (VPP) technologies (available for download here: VPP Market Study – ETT Center | ETT Center) and recently published report on AI in Energy and Commodities (AI in Energy and Commodities – ETT Center).
In coming years energy transition will focus especially on power grid expansions and the development of flexibility markets, where Battery Energy Storage Systems (BESS) play a crucial role, see, for example, Battery Energy Storage Systems (BESS) as a Key Flexibility Provider – ETT Center.
The demand for solutions that enable battery market participation is growing. Examining the battery value chain, we can identify three main types of solutions: Battery Management Systems (BMS), Energy Management Systems (EMS), and trading & analytics solutions. The BMS is typically provided by battery manufacturers as part of the hardware package. These solutions must meet increasingly complex requirements, including the estimation of Remaining Useful Life (RUL), State of Charge, enhanced safety measures, cybersecurity, real-time interfacing, support for emerging battery chemistries, and compliance with regulations such as the Battery Passport.
EMS, often developed by third-party providers, serves as an intermediary, connecting batteries to various applications and supporting battery analytics. These systems are calculating such battery KPIs such as RUL, SoC and more and claiming to provide more comprehensive solutions for these complex tasks than BMS.
The profitability of a battery depends heavily on its purpose and the market environment. Key considerations include co-located batteries with wind or solar parks versus stand-alone systems, in-front-of-the-meter versus behind-the-meter configurations, where batteries contribute to demand-side flexibility. Commercial optimization and market access for batteries is an important part of the battery value chain.
Batteries achieve the highest profits through trading across multiple markets, ranging from different reserve categories to intraday and day-ahead markets. Cross market battery optimization presents a major challenge, as it must factor in not only market prices and volatility but also battery lifespan, state of charge and contractual constraints, which often limit the number of charge/discharge cycles.
The input data such SoC and RUL come from EMS type of solutions, and the quality of trading analytics depends on the quality of these input data and ability to predict the impact of trading activities on these battery KPIs.
What are different approaches used by vendors to provide accurate input data to battery optimization and trading? Are there solutions covering the whole value chain from data management to analytics and rea time trading? How do these trading solutions consider the arbitrage between ancillary services market and wholesale markets? What are methodologies employed by vendors offering battery analytics? These are the questions ComTech Advisory aims to explore in our Battery Trading and Analytics study.
We are actively seeking sponsors interested in showcasing their battery-related solutions and benefiting from the insights generated through this market research. If you are interested, please let us know.
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