CALGARY, Alberta (Nov. 19, 2025) Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy SaaS company that leverages generative AI across its solutions, is releasing its latest analysis on the ERCOT battery energy storage system (BESS) market, highlighting the dramatic shift in profitability and operator strategies as battery saturation transforms the Texas power landscape.
Average annual revenue for batteries in ERCOT has dropped sharply from $149 per kilowatt in 2023 to just $17 per kilowatt projected for 2025. The share of ancillary services in BESS revenue has fallen from 84% to 48% over the same period, forcing operators to pivot away from traditional strategies and adapt to a rapidly changing market.
“ERCOT’s battery market has reached a critical turning point. As saturation drives down profitability, operators must evolve beyond ancillary services and embrace sophisticated strategies to remain viable,” said Juan Arteaga, PhD, principal analyst at EIR.
Key takeaways:
- ERCOT’s installed BESS capacity surged to 11 gigawatts by mid-2025, with batteries delivering more than 7 gigawatt-hours during peak demand.
- Market saturation has driven ancillary service prices down, with average annual battery revenue collapsing nearly 90% in two years.
- Profitability among operators now depends more on strategic site selection, operational timing, and energy market optimization, rather than fleet size or scale.
- Energy arbitrage strategies have become widespread, but have not offset declining returns, with most major operators posting year-to-date profitability below 2.2%.
- Future market success will require advanced approaches as ERCOT transitions to Real-Time Co-optimization plus Batteries (RTC+B), making service selection and timing increasingly critical.
EIR’s analysis pulls from a variety of products including Enverus PRISM, Enverus FOUNDATIONS® – Power & Renewables and Enverus Mosaic.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
