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2h ago

EIA: Price Arbitrage Now the Top Use for U.S. Grid Batteries

An updated EIA survey spotlighting primary use reveals a market-driven pivot in battery operations.

From the US EIA, “66% of all utility-scale battery capacity had arbitrage among its uses, and that 41% of the total capacity was primarily used for arbitrage.” Image: US EIA

Overview

  • Operators reported that 66% of utility-scale battery capacity had arbitrage among its uses and 41% was primarily used for arbitrage in 2024.
  • Frequency regulation ranked second as the primary use at 24%, after previously being the most common application.
  • The shift is captured by the EIA’s 2023 move to ask each operator for a single primary use, enabling clearer comparisons across the fleet.
  • CAISO ended 2024 with 11.7 GW of battery capacity, 43% of which was primarily dedicated to arbitrage.
  • ERCOT reported 8.1 GW of capacity with about half primarily used for arbitrage, underscoring where the trend is concentrated.