Guides
Guides
Guides

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.

  • How often do you update the model?
  • What is included in the Forecast run library?

  • 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 we treat a cycle?
  • Why aren't the revenues of batteries with a 4-hour duration double that of an equivalent 2-hour duration battery?

  • Why are TNUoS rates £0 for transmission-connected systems?
  • Do you consider Distribution Use of System charges in the revenue forecast?
  • What impact do line losses have?

  • 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?

  • How are you backtesting results?