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Batteries and BESS: It is not gold all that glitters.
Some months ago, batteries revenues were calculated as the spread between cheap and expensive hours. For sure the early-movers will be able to capture good revenues by day/night or weekday/weekend spread trading. But during the last 6 months, they have become the most valuable asset as it can provide strong inertia and fast flexibility management. This is exactly what the power grid needs in order to absorb increasing renewables energy mix and reach a Net-Zero status.
Monetizing your investment on BESS can be a challenge. Traditional use cases were based on deep discharge during peak-price hours, reducing the number of effective cycles and life-time.
As soon as BESS installed capacity reaches aFRR capacity, spread prices go to zero. However, flexibility services will be there forever in order to match instantly offer and demand and make the system safe.
Ancillary services require fast response but limited discharge, reducing cell stress and supporting +30 years of BESS operation.
Flexible grid connections make maximum injection dependent on real-time grid conditions rather than guaranteed capacity.
BESS stores excess production to avoid curtailment, optimises injection capacity and provides ancillary services in parallel.
How NTT DATA helps
Based on market price forecasts, different strategies are evaluated and AI will provide the optimal solution (in terms of revenues, benefits, life-time…).
Our solution will take the optimal strategies and will perform the go-to-market, executing orders on daily, intraday and continues energy markets, together with our unique ancillary services algo-trader for RR, aFRR, mFRR, imbalance, etc. You will be able also to represent third-party assets in the market.
Evaluate the results of every auction or market round in seconds, learn from the past and optimize your strategies for the future and automate with AI cost allocation and invoice reconciliation. Execute the market settlement and also the PPA’s and third-party contracts. Based on forecasted volumes, accrue the results for the BoM, BoQ or BoY.
Although most of the revenues of a BESS will come from the physical markets, it is also important to look at the mid-term position in terms of risk management and guarantee minimum revenues. We implement leading ETRM systems to analyse portfolio composition, evaluate hedging, calculate risk KPI’s and optimize margin.
Operational benefits reflect the potential contribution of optimized BESS strategies to revenues, asset life, curtailment management and portfolio flexibility.
Up to +50% more revenues based on optimized strategies.
+20% increase without reducing revenues.
20% reduction of curtailed year energy.
Scale revenues, boost energy injection and gain flexibility as power systems become more congested and renewable-driven.
