Stop 06 of 07 · Operation

How can a battery earn money on the energy market?

About 6 min · 3 questions ·

Thursday
The situation

The chargers are quiet. The battery is half full, and electricity will be cheap for the next six hours.

An aggregator has asked whether the battery could also help balance the grid at night.

The questionWhat else can a battery at a charging site do when no cars come?

Four sources of valueWhat a site battery can earn
Who paysNeeds
Arbitragebuy cheap, use or sell dearthe market spreadprice data
Peak reductionlower highest drawlower grid chargesa tariff with peak charges
Flexibilityhelp a local gridthe grid operatora flexibility market
Balancingsteady the frequencythe transmission operatorprequalification

Which of these is possible depends on the country, the tariff and the market rules.

Markets open to small systems

RED III asks Member States to allow small and mobile systems, such as home batteries and electric cars, to take part in electricity markets, including congestion management and flexibility and balancing services, also through . The Batteries Regulation supports this from the battery side: owners and third parties acting for them get read-only access to state-of-health data, among other purposes to make the battery available to aggregators and market participants.

Charging comes first

At a charging site, market services are a second use. The controller has to keep enough energy for the cars, so market bids take only what the charging plan does not need: typically at night, between peaks, or on quiet days. Every extra cycle also adds to the battery's ageing, which has to be weighed against the revenue.

Check your understanding

3 questions. Answer all of them to complete this stop. Each answer explains itself.

01Question 1 of 3

What is arbitrage for a battery?

02Question 2 of 3

What does the Batteries Regulation give owners for market use?

03Question 3 of 3

Why do market bids take only part of the battery at a charging site?

  1. EUR-Lex: Directive (EU) 2023/2413 (RED III), Article 20a inserted into Directive (EU) 2018/2001. https://eur-lex.europa.eu/eli/dir/2023/2413/oj. Checked 09 Oct 2026. © European Union, reused under Commission Decision 2011/833/EU.
  2. EUR-Lex: Regulation (EU) 2023/1542 on batteries, Articles 3, 12, 14 and 77 and Annex V. https://eur-lex.europa.eu/eli/reg/2023/1542/oj. Checked 09 Oct 2026. © European Union, reused under Commission Decision 2011/833/EU.
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