How the model optimises battery operation to maximise revenues.
How does the dispatch model work?
The dispatch model simulates how a battery would operate in each market to maximise total revenue. It decides when to charge, discharge, or provide grid services based on price forecasts.
Key inputs
- Power capacity (MW): Maximum rate of charge/discharge
- Energy capacity (MWh): Total storage capacity (determines duration)
- Round-trip efficiency: Energy lost during cycling (~88% default)
- Cycling limits: Maximum cycles per day to protect warranty
What the model optimises
- Wholesale arbitrage: Buy low, sell high across day-ahead and intraday markets
- Ancillary services: Reserve capacity for frequency response and other grid services
- Co-located renewables: When paired with solar/wind, optimise combined export
Key assumptions
- Perfect foresight: The model knows future prices, then applies calibration to reflect real-world uncertainty
- Physical constraints: Respects all battery physics including ramp rates and state of charge limits
- No simultaneous charge/discharge: The battery cannot charge and discharge at the same time