Europe’s Battery Revenue Map

A two-hour battery in Poland could make over €800,000 per MW each year. In Estonia, the same battery earns about €175,000 per MW. That’s a fourfold difference in the same year with the same technology. 

These numbers are modelled estimates for a typical battery: about two hours of storage, running 1.5 cycles per day, always available. The old index assumed every battery got the best possible returns. The new version considers competition, how much capacity is already in place, and how much space is left in each market. Simply put, it recognises that as more batteries compete for the same revenue, each one earns less. Compared to overly optimistic reports, we believe this is a realistic starting point for any BESS business case in Europe.

The difference in earnings

Batteries earn money in two main ways. First, they buy energy when prices are low and sell when prices are high in day-ahead and intraday markets. Second, they provide ancillary services, which are fast-response products that help grid operators keep the frequency at 50 Hz. The main types are FCR (frequency containment reserve), aFRR (automatic frequency restoration reserve), and mFRR (manual frequency restoration reserve). When these services pay well, more batteries enter those markets.

Right now, earnings vary a lot by location. In May 2026, Clean Horizon ranked Poland highest, with a two-hour battery earning over €800,000 per MW per year, thanks to high aFRR prices averaging more than €120 per MW per hour. In northern Italy, a four-hour battery made about €654,000 per MW, with most of that from mFRR. Latvia and Lithuania also saw fast growth, reaching €338,000 and €326,000 per MW. Estonia was the lowest in the group at around €175,000 per MW.

​

For developers considering a 1-5 MW project, these numbers are concerning. Relying on one ancillary product in one market is risky, because it assumes few others will join. In reality, that rarely happens.

Market saturation

You can already see earnings dropping in some places. In Denmark’s DK1 zone, aFRR and mFRR revenues fell in May as more batteries competed for the same market. Clean Horizon’s old method didn’t show this effect. Germany saw this earlier. According to Synertics, batteries made up nearly 18% of prequalified FCR power, and analysts warn that as more BESS enter a market, prices drop and each new battery earns less. That’s why German operators are now focusing more on aFRR and energy trading.

Great Britain shows a similar trend in trading. Modo Energy reported that GB battery revenues were about £70,000 per MW per year in March 2026. Most of this came from the Balancing Mechanism, which the grid operator uses to buy last-minute power, rather than from frequency services. This pattern is seen in every mature market: the most profitable area today is where everyone will go next.

Let’s be clear: the €800,000 per MW figure for Poland is the maximum, and it’s not easy to reach. It assumes perfect timing and access to the best-paying product in a strong month, before more batteries enter the market. Treat this as the highest possible number, and then consider what your lowest earnings might be after factoring in competition, safe cycling, and real availability. 

A battery that only sells FCR in a crowded market will see its earnings drop. But one that switches between arbitrage, aFRR, mFRR, and capacity as prices change can stay closer to the top. Aggregation platforms help with this by combining assets into a virtual power plant (VPP) and moving them between markets. Hive Power’s FLEXO does this, following each owner’s strategy. This way, a 2 MW battery isn’t stuck with one product if a better opportunity is available nearby.

Through 2027, expect returns to keep varying by location. Newer markets like Poland and Portugal will offer high returns until more batteries are built. In established markets, those who can switch between products will do best. It’s not just about capacity—how you dispatch your battery will matter most.

‍

FAQ

How do batteries earn money from aFRR? aFRR (automatic frequency restoration reserve) is a balancing product a grid operator buys to automatically restore frequency after a disturbance. A battery gets paid to reserve capacity and again when it delivers energy. In Poland, high aFRR capacity prices above €120/MW/h were the main reason batteries topped Europe's revenue table in May 2026.

What is revenue cannibalisation in battery storage? It's when new batteries entering the same market drive prices down for everyone already there. As more assets chase a fixed pool of ancillary services, capacity prices fall and the marginal asset earns less. ‍

Why do BESS revenues vary so much between countries? Revenue depends on local market design, how saturated each ancillary product is, and how much price volatility there is to trade. A market with high balancing prices and few competing batteries pays well until deployment catches up. That's why multi-market routing matters more than raw capacity.

‍