Core Insights - The economics of battery storage systems (BESS) in Europe have improved significantly due to changes in the EU's power pricing structure, with potential profits rising by over 15% [1] - The new EU system allows for power prices to be set every 15 minutes, enhancing arbitrage opportunities for BESS operators [1][2] - The average increase in arbitrage potential across European power markets is 14%, with some countries experiencing gains over 20% [1][3] Pricing Structure Changes - The shift from hourly to 15-minute trading intervals in the EU electricity market has created new income-generating opportunities for BESS [2] - In Lithuania, trading over 15 minutes yielded approximately $263 per megawatt-hour (MWh), which is 14% more profitable than hourly trading [2] - In Germany, the profitability of quarter-hour arbitrage was found to be 16% higher than that of hourly arbitrage [2] Market Dynamics - Countries with less flexible power generation and a high share of intermittent renewables experience larger price swings, making shorter trading intervals more beneficial [3] - In regions with flexible electricity supply, such as Norway and Portugal, price stability reduces the profit difference between 15-minute and hourly trading [3] Revenue Opportunities - Rystad Energy's analysis indicates that the transition to shorter trading intervals could significantly enhance revenue opportunities for European storage operators [5] - The comparison of arbitrage cycles shows that 15-minute markets require more charging and discharging steps, which can lead to increased revenue potential [5]