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Battery storage

Energy

Battery storage is set to play a significant role on the route to Net Zero. Its ability to balance supply and demand, both by responding quickly to frequency events and by shifting energy across the day, are seen as crucial.

Investing in and operating battery storage assets is significantly more complex than conventional assets. Forecasting long term battery storage revenues requires an approach that appreciates the technical capabilities of batteries, the changing market dynamics on the path to Net Zero, the impact of competition and the different short-term markets that batteries can operate in.

Our unique breadth of experience allows us to help our clients with the full lifespan of the asset, and to understand the risks and opportunities in investing in and operating battery storage. This includes: 

  • Our battery storage modelling is used extensively by investors, developers and lenders to forecast revenue streams of individual storage assets across a range of scenarios.
  • Our standalone battery optimisation models support in-house analysts with running profile optimisation and those operating onsite batteries.
  • Our live industry leaderboards allow market analysts to stay on top of and benchmark storage performance and strategy instantly.
  • LCP Enact is used by traders and optimisers on the ground to maximise the potential of battery storage assets in the multiple traded markets available.
Is battery storage a good investment opportunity?

Is battery storage a good investment opportunity?

Thought Leadership

In this report we analyse the business case for battery storage investment and how trading strategies need to adapt to ensure these forecasts are realised.

Explore our analysis

How we can help 

Battery storage revenue forecasts

Our battery forecasts help clients understand the expected returns of the asset, and how these returns vary based on location, running and co-location strategy, technical parameters, level of competition and market background scenario.

Our stochastic approach models a large number of simulations, allowing us to capture the full range of outcomes under different intermittency, demand and fleet availability profiles, and, crucially, tail events (such as high peak prices) which can provide a significant source of value, allowing our clients to appreciate the full range of possible outcomes.

LCP Standalone Battery Optimisation model

The LCP Standalone Battery Optimisation model allows operators of on-site batteries and in-house analysis teams to maximise the profitability of their assets. The model takes in market prices, on-site load and generation profiles and the asset’s technical characteristics and uses LCP’s proprietary approach to give the optimal running profile. The model can be used to determine the optimal size and duration of a new battery asset, and to assess the profitability impact of future upgrades.

Asset benchmarking

LCP Enact provides market analysts with live and historic estimations of asset revenues and profits across wholesale, balancing and ancillary markets. Users have the ability to quickly compare total profits over custom time ranges using leaderboards, or to drill into specific asset strategies and running profiles. With these tools, users can assess realised returns, understand the strategies and revenue stacking approaches of different optimisers, and identify when certain assets capitalised on or missed lucrative trading opportunities.

Trading and operational optimisation

LCP Enact is used by traders, asset owners and battery storage optimisers across GB and Europe to maximise the potential of their assets. From real time data integration and analytics through to proprietary forecasts around system imbalance and cash-out pricing, Enact provides users with the full suite of tools required to efficiently trade their battery. Enact also allows users to compare the relative profitability of ancillary markets against wholesale and balancing opportunities, enabling users to revenue stack efficiently and further increase their margins.

Battery storage subscription service

Our subscription service is a comprehensive set of offerings designed to provide battery storage asset owners with everything they need to invest in batteries. Clients will have access to forecasts of their specific assets, updated quarterly, the battery optimisation model to perform in house analysis or operations, and a licence to LCP Enact to monitor market trends and competitor performance.

Our latest thinking

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Explore our solutions

We can help our clients with a wide range of issues from whole system modelling to individual power plant and policy impact analysis.

We advise on the optimal dispatch of assets within the wholesale market, forward planning of maintenance activities and valuation of commercial upgrades to plant.

Strategic advice aimed at maximising the benefits and minimising the risks associated with the Capacity Market and Contracts for Difference.

We provide detailed forecasts of the GB and Irish power markets, using our EnVision modelling framework. This can provide both short-term and long-term forecasts of all key system metrics, from system wide to individual assets.

We work extensively in the Irish market, providing market modelling and analysis to investors, generation owners and governments.

Our understanding of market dynamics and modelling experience allow us to offer evidence-based recommendations on complex policy and regulatory issues that allow fully informed decision-making.

We help our clients identify technological and data led solutions to solve the issues they face. From risk modelling for pension clients to providing insight to the energy market, we use the latest cutting-edge technology to help clients make better and more informed business decisions.

We combine bottom-up unit-level modelling with market and policy insights to quantify the value and understand the risk associated with any generation asset. 

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If you would like to know more about our services and how we can help you with Energy analytics.

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