We have seen a dramatic shift in FCAS price fortunes over the past year or so, going from all-time highs of ~$229.3mn in Q1 of 2020 (due to the separation event) to only ~$40.1mn in Q1 2021. Since 2019 we have also seen regulation raise prices decline from robust prices in July to Dec 2019, which averaged over $40/MW/hr to an average of $15/MW/hr in 2020 over the same period. Regulation FCAS has traditionally been a staple revenue stream for battery storage, accounting for ~40% of revenues for Horsdale in 2019 and ~15-20% of revenues in 2020.
So, what has changed in the market since the highs of 2019 to push FCAS prices lower (excl. the separation event in February 2020). We looked at the regulation raise service and which technologies and units have been setting the price and the price bands of those units when they set the price.
