Future power systems with high penetrations of variable renewables will require increased levels of flexibility from generation and demand-side sources in order to maintain secure and stable operation. One potential flexibility source is large-scale energy storage, which can provide a variety of ancillary services across multiple time scales. In order for appropriate levels of investment to take place, and in order for existing assets to be utilized optimally, it is essential that market signals are present which encourage suitable levels of flexibility, either from storage or alternative sources. Suboptimal storage plant dispatch due to uncertainty and inefficient market incentives are represented as operational constraints on the storage plant, and the impact of these inefficiencies are highlighted. Thus, changes required in operational practices for storage plant at different installed wind capacity levels, and the challenges that private storage plant operators will face in generating appropriate bids in a market environment at high variable renewable penetrations are explored. The impacts on system generating costs and storage profits are explored under different plant operating assumptions.