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): AC useable energy capacity at point of connection — the energy the battery can actually export to the grid, measured at the meter (determines duration)
- Round-trip efficiency: Measured at point of connection, including all losses in the round-trip (~88% default). Applied during the charging phase to calculate correct import volumes
- 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 within each window: The model has perfect foresight of prices over the optimisation window for that battery duration, 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
Optimisation window length depends on battery duration
The dispatch model does not use a single rolling horizon for every battery. Longer-duration batteries need a longer look-ahead so the optimiser can plan full charge and discharge cycles across multiple days. Site forecasts support durations up to 12 hours.
| Battery duration | Days per window | Hours |
|---|---|---|
| Up to 4 hours | 1 | 24 |
| Above 4 hours and up to 6 hours | 2 | 48 |
| Above 6 hours | 3 | 72 |
For example, a 2-hour battery is optimised in 1-day windows, while an 8-hour or 12-hour battery uses a 3-day window. The same rules apply across European market regions that use the global dispatch model.