Flextricity is one of the early movers in pulling together a BM offering, something that feels like a natural progression after the rather harsh reality checks of FFR Curtailment and Capacity Market De-rating dampened some investor enthusiasm for storage ownership and development.  Neither piece of news was unexpected, but the timing of them both were.  In particular, the CM de-rating timings (in between pre-qualification results and the need to submit credit cover) could perhaps politely be described as "disruptive". 

But the reality is that the market was always likely to be flooded by the flocking to what were perceived to be fixed contract revenues. At the outset, batteries were always discussed in light of their flexibility, and adaptability to build a revenue stack, and EFR and, to a lesser extent, FFR and CM, played neatly into the  FiT and RoC mentality.  We therefore need to swing back to the stacking of revenues...balancing, load shifting, digital inertia and the generation of monetisable data to supplement grid services revenue.

With that broader principle in mind, there is perhaps an interesting opportunity in the Capacity Market brought about by supply disruption to the gas market, and a consequent surge in pricing. This may partially correct by the time the CM auctions come round, but I wonder if worries about gas pricing could play on the minds of the peakers and push the auction bids higher...if so, there's an opportunity for batteries to just look a little bit more attractive and secure a little extra value.  

I'd be very interested to hear your thoughts on this, to chris.pritchett@footanstey.com