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How battery operators profit from energy markets

Lizhong Zhang, Junqi Liu, Jianxiao Wang, Lei Zhu

May 18, 2026

A company running a hybrid battery system (two different types of storage) can maximize profit by treating them differently: use the quick-response battery for buying cheap and selling dear in spot markets, while the slower one focuses on reserve payments. The model shows when it makes sense to transfer power between batteries, especially if grid constraints leave them stranded. This matters because as renewables become dominant, battery operators increasingly set prices rather than just accepting them.
Published as Profit-Oriented Planning and Multi-Market Operation Model for Hybrid Energy Storage Systems arXiv:2605.17867
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