Storage Revenue Optimisation Model (SROM) Service Sheet
December 22, 2023DownloadsDownload Service Sheet
FTI Consulting’s energy experts have developed a SROM to help energy businesses understand the value and risks of achieving an optimal revenue stack for batteries of different sizes, configurations, and financial constructs.
Bidding strategies for storage projects need to be carefully optimised to maximise revenue across different markets, minimise degradation and avoid operational conflict between competing revenue streams. Considering the new ‘integrated resource provider’ “(IRP)” classification for energy storage, SROM enables interested parties to:
- Estimate the value of both avoided technical and economic spill
- Caused by binding network constraints and/or co-locating with renewable energy facilities
- Consider the value of future revenue streams
- Including fast frequency response, new financial products (virtual storage products) and virtual transmission lines
- Understand the marginal benefit associated with DC-coupled batteries
- Including the value of avoided clipping loss. Our model has demonstrated considerable value for policymakers, market designers, regulators, and investors.