BESS operating modes
How BESS can operate
A grid-connected BESS can work in several operating modes. The most valuable strategy is usually a combination of energy trading, balancing markets, and local grid or site value, depending on market access and technical qualification.
Nord Pool price arbitrage
The battery charges during lower-price hours in the Latvian bidding zone and discharges when the price spread is high enough to cover losses, grid fees, battery degradation, and trading costs.
Frequency reserves
A qualified BESS can reserve fast capacity for FCR, aFRR, or mFRR products, helping the power system maintain balance and earning capacity payments when bids are accepted.
Balancing activation
When the transmission system needs energy up or down, the battery can be activated to inject or absorb power. This can create activation revenue in addition to capacity revenue.
Local grid and site value
Storage can reduce peak loads, support local resilience, and make better use of existing connection capacity, which is especially useful where network capacity is limited.
Revenue potential
How a 1MW BESS can earn revenue in Latvia.
A 1MW battery does not have one fixed income number. Revenue depends on market access, accepted bids, state of charge, availability, fees, losses, and operating strategy. The main revenue streams are energy price arbitrage, balancing capacity, balancing activation, and local grid or site value.
Nord Pool arbitrage: charge when the Latvian bidding zone price is low and discharge when the spread is high enough to cover losses and fees.
Frequency and balancing services: provide FCR, aFRR, or mFRR reserve capacity where the asset qualifies and bids are accepted.
Activation income: when reserve energy is activated, the battery can receive energy payments in addition to capacity revenue.
Local value: behind-the-meter projects can also reduce peak demand, improve resilience, or reduce grid upgrade pressure.
Market snapshot
Public data signals for 1MW BESS
These figures are indicators, not a revenue guarantee. They show why a 1MW battery can have value when it is available, qualified, and dispatched correctly.
Nord Pool Latvia 2025 average
85.72 EUR/MWh
The annual average alone is not revenue. Battery value comes from hourly spreads between low-price charging and high-price discharge.
Latvia 2025 hourly range
-23.58 to 1173.65 EUR/MWh
Wide price spreads create arbitrage windows, but practical income depends on efficiency, degradation, grid fees, and trading execution.
Balancing markets
FCR, aFRR, mFRR
AST and the Baltic TSOs organise balancing and reserve markets where qualified assets can provide frequency and balancing services.
Recent 1MW capacity example
~103-221 EUR/day
Illustrative gross aFRR capacity value using one public Baltic Transparency/Volton snapshot from 18 May 2026: 1MW accepted for 24 hours at 4.3 EUR/MW/h up is about 103 EUR/day; up plus down at 4.3 and 4.9 EUR/MW/h is about 221 EUR/day. This is not a forecast.