Battery assets participating in wholesale markets profit from storing cheap electricity and selling it when prices are high. Therefore, the value that a battery can capture from arbitrage is dependent on the spreads present in the wholesale market, in combination with the operational constraints of the battery.
The KYOS Battery Index serves as a benchmark for battery optimizers in Netherlands, Belgium, Great Britain, Germany, Spain. It shows the average daily revenue per month (in EUR/MW/day) that could have been achieved in the Intraday Market by a 2-hour battery. The KYOS Battery Index accounts for perfect foresight trading, meaning that the battery charges/discharges in the optimal moments. In markets where passive imbalance trading is allowed (NL, BE, GB), we take into account this revenue stream by allowing the battery to optimize 30% of its capacity in the imbalance market.
When renewable assets of the same generation source (wind or solar) produce simultaneously, this tends to depress the wholesale power prices. The price captured by the renewable technology is therefore often below the baseload price. This cannibalization effect is generally summarized in a percentage of the baseload price, the so-called capture rates.
The KYOS Capture Rate Index is an inhouse metric developed to reflect the historical price capturing ability of intermittent renewable assets due to the cannibalization effect in different European power markets. It is obtained from historical day-ahead prices and meteorological generation data of multiple virtual assets aggregated per market area. All virtual assets are considered to have the same technical specifications across markets, and are placed in the most representative locations per area.
The KYOS Capture Rate Index curtails negative prices and is clean of disturbances such as service disruptions, maintenance or snow coverage in photovoltaic panels.
This website provides statistics about renewable electricity generation and its ability to capture value in the European wholesale markets.
We focus on renewable generation and batteries as their operational dynamics make for a challenging valuation landscape. All data have been gathered from public sources and treated and cleaned by KYOS analysts with the greatest care.
Contact KYOS for battery valuations and capture rate forecasts at info@kyos.com, or visit our website www.kyos.com.
