Falling battery prices and mature technology mean battery storage can now be profitable in several Norwegian use cases, provided sizing, controls and tariff logic are correct. Global lithium-ion battery pack prices fell significantly in 2024, with further decline in 2025 driven by overcapacity, scale and increased use of LFP chemistry.
What can a battery be used for?
Energy arbitrage in the power market (Nord Pool)
The battery can charge at low prices and discharge or sell when prices are high. From 1 October 2025, day-ahead settlement is done in 15-minute intervals. Prices vary throughout the day and night is not always cheapest. Good results require algorithmic control adapted to local price profiles.
Peak shaving
For commercial customers with demand tariffs, the battery can reduce monthly peak demand and related demand charges. For households, a similar mechanism applies through capacity-step tariffs. Financial effect depends on local tariff model and real load profile.
Local flexibility markets (Euroflex/NODES)
Grid operators buy flexibility for congestion and voltage control. Businesses may be compensated for reducing or shifting demand. The Euroflex programme (2024-2026) is scaling this value chain in the market.
Statnett reserve markets
Batteries can deliver FFR, FCR-N/D, aFRR and mFRR when prequalification and volume requirements are met. For example, aFRR is normally at least 1 MW, and mFRR is usually at least 10 MW (with 5 MW in NO1 and NO3). This can provide substantial revenue, but requires robust EMS, telemetry and testing routines.
Technology, safety and supplier selection
Quality and suitability vary between suppliers. Chemistry choice (for example LFP for robustness and cost), cycle life, temperature tolerance, fire safety (NFPA 855/UL 9540A), warranties and control system (EMS) should be evaluated together. Fire protection must be sized for thermal runaway risk, where aerosol, water mist, inert gas or combinations may be right depending on design.
Illustrative project setup
Project value comes from interaction between hardware and software that optimises operation and market participation. We use PRELECT as a platform for load balancing, flexibility and battery optimisation.
Summary
Properly engineered battery storage can reduce costs (demand/capacity), increase solar self-consumption, and create revenue in both local flexibility markets and Statnett reserve markets. Profitability depends on tariff and load profile, market pricing, technical setup and operating strategy.