Optimizing battery dispatch across German markets
For an overview of available revenue streams and market structures, see the Revenue Stack page.
Illustrative 15-min Dispatch
The model optimizes battery operations at 15-minute granularity, co-optimizing across energy and ancillary service markets:
Multi-market Optimization
The dispatch model solves across multiple market stages:
- Day-ahead step – contracts volume in day-ahead, FCR, and aFRR capacity markets with perfect foresight
- Intraday step – sequential optimization with 2-hour rolling horizon, honoring day-ahead commitments
- Real-time step – sequential optimization with imperfect foresight for real-time and aFRR energy activation
Capacity is reserved at day-ahead for intraday opportunites.
Market rules are respected: symmetric provision of FCR charge and discharge is required, and the maximum FCR capacity is limited to 80% of the maximum power of the asset.
Intraday Market Saturation
The intraday markets represent a large revenue stream in Germany, with the highest traded volumes in Europe.
- Intraday traded volume grows over time as more storage, renewables, and non-physical traders enter the market
- More liquidity means more competition and fewer extreme price events
- Intraday trading opportunities become less valuable for each individual battery
The model accounts for this saturation effect with diminishing returns as battery penetration grows.
aFRR Energy Activation
The model accounts for expected energy activation in aFRR.
- It uses historical activation probabilities by time of day and direction
- Energy payments are based on these activation probabilities, and energy price
- Impact on battery state of charge is included in the optimization, as well as throughput into cycling constraints.
Flexible Connection Agreements
The model supports Flexible Connection Agreements, which impose operational constraints on grid-connected assets including ramping rate restrictions, export/import limits, and ancillary service participation constraints.
See the dedicated Flexible Connection Agreements page for detailed documentation on how they impact battery operations and dispatch optimization.