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Posted 4 months ago | 2 minute read
GridBeyond delivers 86.7% of perfect foresight in 12 months according to its latest analyses
In today’s dynamic energy markets, traders navigate through various strategies aiming to maximize returns while mitigating risks.
In 2023, Battery Energy Storage Systems (BESS) in the Electric Reliability Council of Texas (ERCOT) experienced significant revenue growth, reflecting the increasing importance of energy storage in the region’s electricity market. BESS revenues were primarily driven by their participation in various market segments, including energy arbitrage and ancillary services. But accurately capturing these “stacked benefits” requires detailed analysis of both the operational characteristics of the battery and the nature of the value streams it captures.
In a new study, Maximizing value in energy markets in ERCOT: Trading strategies and analytical insights, GridBeyond uses a modeling approach designed to accurately quantify the benefits of multiple value streams. It found that the GridBeyond ERCOT Bid Optimizer would have earned $376,980/MW, which is 86.7% of perfect foresight, in the 12 month period of June 1 2023 – May 31 2024 for the ERCOT South Hub. Additionally, in August 2023, we achieved 91.2% of perfect foresight. This is notable because over half of the annual revenue ($193,410) is earned in just this one month.
“We are very proud of this results. We utilize sophisticated modeling software to accurately represent the dispatch of the battery subject to pre-defined operational characteristics. The software allows for dispatch optimization to capture benefits such as the value that can be created through price arbitrage between day -ahead and real-time energy markets”,
commented Sean McEvoy, GridBeyond US President.
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