Modelling battery revenues in the BM is a multi-step process, as indicated below.

We assume national bid-offer pricing, which is modelled by flexing demand up and down with the intraday supply stack, and setting a minimum spread.

Once we have the price, estimating the balancing actions for batteries can be split into the following steps:

More information on each of these steps is included in various subpages, linked below or explore the panel on the left.

1. What's the size of the market, now and in future?

First, we model the volume of balancing actions that will be required for both system-flagged (i.e. constraint) reasons and for energy-balancing reasons.

The links provide more information on modelling balancing volumes and assessing the flexible competition .

2. What are expected dispatch rates for system and energy actions, and how will batteries compete in these markets?

More information on dispatch rates of traditional, and battery technology is linked.

3. And finally, how might a battery actually operate in the BM and generate revenue?

We create a dispatch profile of how a single 'optimal' battery in a certain location (with a defined number of cycles and energy storage capacity, etc) would behave. Trades are also required in the intraday markets to rebalance state of charge.

More information on how we optimise batteries within the BM is linked.