Energy storage: optimizing towards an effective revenue stacking process

The focus will be on developing an optimization model capable to explore the multiple revenue streams that utility-scale batteries could have in order to enhance the business model. Having a viable business case for utility-scale batteries depends on exploring multiple sources of revenues (e.g., energy arbitrage in the day-ahead and intra-day markets, capacity markets, providing ancillary services). However, realize which is the best strategy is not straightforward. First, the services can be concurrent. Then, market prices can be quite volatile. Lastly, batteries have their own operational constraints such as the number life cycles that need to be considered. The development of a stochastic optimization model will help in the decision-support.