Unlock the potential of Battery Energy Storage Systems (BESS) in Spain with our comprehensive revenue estimation model. As the demand for energy storage grows, supported by significant EU funding through the Recovery, Transformation, and Resilience Plan, BESS plays a critical role in achieving Spain’s 2030 energy transition goals outlined in the NIECP.
Battery Revenue Estimation Model
At Optimize Energy, we’ve developed a model to estimate revenues for battery operations in Spain, focuses on:
- Arbitrage: Buying low-cost electricity and selling it when prices are high, capitalizing on market volatility. This strategy is optimized when combined with ancillary services for maximum returns.
- Ancillary Services: Essential for grid stability, these services ensure secure transmission. Our model optimizes revenue through Secondary Regulation, enhancing your battery’s contribution to grid operations.
Our approach
Design and Concept
We analyse the configurations that initially best suit our client’s investment ideals. If the project is subsidised or to be subsidised, we adapt the simulations to the given configurations.
- Information gathering
- Co-Creation of scenarios
Market optimization
Allocating energy volumes at different markets as Day-ahead and Secondary regulation, which currently are the most profitable.
- Optimal volumes
- Battery physics
- Curtailment impact
Price shaping and correlation
Forecast of the price differential between Secondary Regulation and day-ahead market can be based on historical statistical correlation based on shaping power generation technologies and spot market prices estimated.
- Bankable price curves
- Intraday fine-tunning price
- Correlation back-tested
Scenario-Based
Providing three distinct scenarios to help you evaluate revenue potential across various market conditions:
- Low Scenario: Focused on pure arbitrage optimization.
- Central Scenario: Combines arbitrage with strategic Secondary Regulation market participation.
- High Scenario: Dynamically alternates between arbitrage and Secondary Regulation markets, prioritizing higher revenue opportunities.
