Impact of storage

Fleet storage is added to the generation stack

Once we have the daily charge and discharge profile for pumped storage, other storage, and battery storage:

• Any charging is added to national demand.
• Any discharging is added to the generation stack. The short-run marginal cost of the discharge actions is determined by the average charging cost on that day, plus a strike price reflective of the cycling cost (which changes over time with the learning rate of that storage type).

We then re-calculate the marginal price with storage

Now with storage added in, the clearing price of the half-hour goes from £120.79/MWh to £105/MW:

The resultant price distribution is as such: