Storage Index
The Storage Index is a monthly metric showing the estimated annual profit of a storage asset based in France. It achieves this by annualizing the revenue potential and the induced operating costs based on the energy and ancillary service prices from that specific month. By assuming the entire year mirrors that one month (repeated 12 times), the index highlights the direct financial impact of that month's market conditions on the storage asset.
Many assumptions occur when computing the index, but we leverage our operating knowledge to compute a meaningful and realistic value.
The profit is computed with the sum of the following elements :
The computation works sequentially : first the optimal battery dispatch is computed between the FCR service, the aFRR service and day-ahead trading. Then the battery activation is simulated together with intraday re-optimisation. Eventually the cash flow is computed.
- FCR Service : reserved capacity revenue, activation energy cash flow and SoC balancing cash flow
- aFRR Service : reserved capacity revenue, activation energy cash flow and SoC balancing cash flow
- SPOT Trading : revenue from buying and selling energy on the day-ahead market
- Intraday Trading : revenue from buying and selling energy on the day-ahead market
- Grid fees : cost incurred by drawing energy from the grid
- Battery degradation : cost of both calendar and cycling degradation with a constraint on a maximum of 2 cycles per day
The computation works sequentially : first the optimal battery dispatch is computed between the FCR service, the aFRR service and day-ahead trading. Then the battery activation is simulated together with intraday re-optimisation. Eventually the cash flow is computed.
There are many assumptions that are required to compute an index. The following ones are based on what works in operations and not on what would yield the highest values :
Many other assumptions exist to compute the index, please get in touch at [email protected] for more information.
- Perfect foresight : FCR capacity price, aFRR capacity prices Up and Down, and day-ahead prices are perfectly known in advance. aFRR marginal prices and imbalance prices however, are not known in advance.
- Round-trip efficiency : 85%
- Continous SoC management : on the ancillary services, the SoC management policy is to target a constant value, meaning that any offset on the state of charge setpoint is corrected as soon as possible.
- No parallel markets : at a given time, a battery can participate only in a single market. For instance, it cannot participate in both day-ahead trading and aFRR service at the same time.
- Market taker : bids in simulation do not affect market prices
Many other assumptions exist to compute the index, please get in touch at [email protected] for more information.
We can provide a detailed index with the following benefits :
While the storage index is free, both the detailed index and the detailed dashboard have a cost. Please contact [email protected] for more information.
- Custom scenarios (market and cost choices) and on custom storage systems allowing you to compare performances on specific assets
- Detail on market and costs dispatch to measure different markets value
- Access to an additional 15min step data dashboard for detailed analysis and battery status
While the storage index is free, both the detailed index and the detailed dashboard have a cost. Please contact [email protected] for more information.