Storage Bid Optimization: Maximizing Value and Emissions Reductions

March 4, 2024

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Substantial opportunities exist for merchant storage projects to capitalize on renewable-driven volatility in energy markets, especially in CAISO and ERCOT, which are projected to grow at 20% through 2029.  

In a recent webinar, Dr. Gary Dorris, CEO of Ascend Analytics, joined Mr. Mike Huisenga, Managing Director of Business Development, and Dr. Carlos Blanco, Managing Director of Analytic Solutions from Ascend Analytics, to discuss storage bid optimization strategies, revenue stacking, revenue-optimizing risk management practices, and the decarbonization value of batteries. 

Key Takeaways 

  • Bid optimization strategies must account for physical operating constraints, future market price probability, an asset owner's risk appetite, and specific market opportunities at a given node. 
  • Maximizing revenue requires forecasting the relative value of ancillary service and energy products using advanced bid optimization software, such as Ascend's SmartBidder™.  In addition, strategies must account for how each bid set will impact state-of-charge to ensure day ahead obligations can be met while minimizing energy deviations during volatile periods.  
  • Significant value creation opportunities exist for revenue stacking while maintaining compliance with market rules, warranty constraints, and project risk policies. Battery storage can act as a valuable physical hedge when capturing arbitrage opportunities between day-ahead (DA) and real-time (RT) energy prices. 
  • Optimizing storage and hybrid projects requires the development of custom risk management and trading procedures that provide benefits related to consistent quality decision making as well as revenue generation. 

Access the full webinar now.

SmartBidder™: Bid optimization and scheduling services for energy storage and renewables 

SmartBidder uniquely offers a unified platform for custom bid optimization combined with scheduling services to manage asset performance and operations for storage, renewable, and hybrid assets. The solution enables users to develop their own customized bid strategies based on nodal specific forecasts, asset specific constraints, and risk-based optimization for day-ahead and real-time bids. 

Contact Us if you’d like to set up a meeting and learn more.  

About Ascend Analytics

Ascend Analytics, an innovative leader at the forefront of the energy transition, offers advanced software and consulting services that capture the evolving and real-time dynamics of energy markets. The company provides its customers with optimized and comprehensive decision analysis that covers everything from long-term planning to real-time operations in the electric power supply industry.

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