Calculation of revenue from batteries and storage systems

At AleaSoft we carry out the revenue calculation for batteries and storage systems in the long term, covering a horizon of up to 20 years.

To calculate revenues, we run hourly price simulations, from which we estimate revenues across all possible scenarios. This allows us to obtain the average revenue forecast, as well as confidence bands with different probability levels. For the hourly price simulations we use the Alea methodology, which combines Artificial Intelligence, time series and statistical models.

We also use operating algorithms for batteries and storage systems that take into account their technical characteristics, such as storage capacity, charge and discharge power, and long-term degradation of the installation, as well as intra-hour differences in market prices.

In the estimation of total revenues we take into account revenues obtained through arbitrage in the day-ahead market, as well as additional revenues from participation in ancillary services and the capacity market. In the case of industrial thermal storage, revenues materialise as savings versus the use of gas boilers, by charging the system in hours with low electricity prices or with renewable surplus.