Where is “alpha” | Market trends in ERCOT and CAISO impacting battery storage
Where is “alpha”
Dynamic changes in electricity markets are creating significant opportunities for value generation. These changes are largely driven by factors such as thermal generator outages, changes in supply demand balance, and evolving market structures, which impact price volatility.
As volatility increases, particularly during periods when thermal outages are high and battery storage resources are nearing the end of their charge, the potential for capturing price spreads grows. The advantage shifts toward operators who invest in sophisticated software, predictive analytics, and real-time optimization. These strategically captured gains, which exceed those of more passive or basic strategies, are often referred to as “alpha” (α).
In this white paper we explore how demonstrates a compelling case for deploying advanced, integrated bidding solutions in FTM battery systems and how in areas such as ERCOT and CAISO skilled operators can outperform basic strategies by as much as 40%-50%.
Download the Whitepaper to learn more!
