CHARGE AND EARN: HOW STORAGE FACILITIES UNLOCK NEW OPPORTUNITIES IN THE ELECTRICITY MARKET

JSC "Market Operator" has prepared an analytical work "The potential of Energy Storage System (ESS) on the Electricity Market: Advantages of Spot Arbitrage", dedicated to a topic of growing relevance - the use of Energy Storage System (ESS) for electricity trading on the spot market.

In a world moving toward decentralized energy and an increasing share of renewable energy sources, the role of ESS becomes critically important — particularly for balancing supply and demand, enhancing the flexibility of the power system.

What’s the essence?

High price volatility in the electricity market, especially in the Day-Ahead Market (DAM), creates favorable conditions for price arbitrage — purchasing electricity during low-demand hours and selling it during peak periods. This strategy enables ESS operators to generate profit and accelerate the return on investment in this innovative field.

In this analytical report, JSC "Market Operator" has:

• Analyzed the arbitrage model of ESS operations on the DAM as one of the key profit-generating approaches
• Described the main features of all segments of Ukraine’s electricity market (bilateral contracts market, day-ahead market, intraday market, balancing market, ancillary services market)
• Performed investment payback calculations considering service costs and ESS capacity
• Presented DAM operation scenarios based on historical price data
• Provided detailed source data and methodology, allowing independent assessment of a project's investment attractiveness
• Outlined input data and specific steps of the calculation algorithm to evaluate potential profit and investment metrics of the project.

This report will be useful for:

• Producers planning to invest in ESS
• Investors in the renewable energy sector
• Electricity traders and market participants
• Aggregators
• Energy analysts and government institutions

Energy storage systems are not just a trend — they represent a real opportunity to establish a new, stable business segment in the Ukrainian energy market. That is why JSC "Market Operator" continues to expand the range of analytical publications, helping the market to develop strategically and reasonably.