Frequently Asked Questions

We have compiled a list of questions that forecast users often have.

Please reach out to the team if you have any more questions.

FAQ: General

How have we determined the demand forecast? E.g. in terms of future weather scenarios, electrification.
How do you deal with price cannibalization for storage (and interconnectors)?
How do you model scarcity pricing?
How do you deal with negative pricing and CfD payments?
Can the model deal with curtailment?
Is there a volume limit to the Balancing Mechanism? If so, how do you set that?
How do you know that the commercial model of storage, and other generator types, is viable?
How did we arrive at our carbon derating factors for gas in the CM?

Why are merchant revenues higher than merchant & ancillary revenues in the forecast?
Are electricity import costs included in the BESS revenue forecast?
Why is average cycling shown less than the daily limit of the scenario?
How do you model churn within the model?
How do you treat a cycle?
Why aren't the revenues of batteries with a 4-hour duration double that of an equivalent 2-hour duration battery?
Do you model local flexibility services?
How do you define maximum continuous time and hourly throughput?
How does the dispatch model decide how much volume to procure for each ancillary service?
Do we model planned outages for the BESS in the dispatch model?

Are your revenues using real or nominal prices? Are the revenue outputs themselves real or nominal?
What do the results look like?
What do the results show?
Why does annual demand TWh not match total generation TWh in the scenario databook?