At AleaSoft we calculate the revenues of batteries and storage systems in the long‑term, with a horizon of up to 20 years.
To calculate revenues, we run hourly price simulations from which we estimate revenues in all possible scenarios. This allows us to obtain the revenue average forecast as well as confidence bands with varying degrees of probability. To perform the hourly price simulations, we use the Alea methodology, which combines Artificial Intelligence, time series and statistical modelling.
We also use battery and storage system operation algorithms that take into account their technical characteristics, such as storage capacity, charging and discharging power and long‑term plant degradation, as well as intraday differences in market prices.
In estimating total revenues, we take into account revenues from arbitrage in the day-ahead market and other revenues from participation in balancing services and the capacity market.
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