TechTalk: Merchant batteries in ERCOT - Risks & Rewards

Battery operators face several risks with their merchant operations in ERCOT, from forced outages on the most opportune days to over-subscribing into Ancillary Services with insufficient SOC to provide these Services. These risks may result in Revenue underperformance, adversely impact battery warranties, and additional financial penalties from ERCOT when the battery has insufficient SOC.
To understand this, we used a digital twin simulation of an actual standalone storage project in ERCOT’s North Hub. Proprietary optimization and price forecasting techniques were used to maximize Revenue from the storage project. We performed numerous simulations to understand the relationship between the aforementioned risks and rewards (Revenue) by participating in various Energy & AS trading strategies.
In this session, we will share the financial outcomes of various risks associated with these specific trading strategies. We then demonstrate how we can reduce risk while generating maximum Revenue.