Dispatch Model

Here, we go into the details of our battery dispatch model in the NEM. We utilise the same overall framework that powers all of Modo Energy's forecasts. For details of this Global Dispatch Model, click here.

Asset-specific forecasts reflect the connection point node

The NEM fundamentals model solves a transmission network with over 200 nodes. Asset-specific forecasts in the terminal reflect the specific node at the connection point, rather than a single price for the wider region.

Energy is still settled at the Regional Reference Node (RRN) for each region, exactly as it is in the real NEM. Nodal congestion determines how a node’s price diverges from its RRN, and forecast Marginal Loss Factors (MLFs) then capture the electrical losses between the node and the RRN. Together, these two effects determine the price signal an individual asset actually faces — covered on the Curtailment and Grid Risk page.

We optimise revenue stacking across wholesale energy and FCAS

The NEM is an “energy-only” market where all electricity is traded on a real-time spot market with 5-minute settlement. A key feature of the NEM is the ability for batteries to earn revenue from multiple streams simultaneously. The model uses linear programming (LP) to co-optimise these streams with realistic “look-ahead” price visibility, for each site scenario:

1. Wholesale energy arbitrage: Charging the battery when the spot price is low and discharging when the spot price is high.
2. Frequency Control Ancillary Services (FCAS): Providing services to help AEMO maintain grid stability. The model bids capacity into the ten distinct FCAS markets (contingency and regulation services, both raise and lower).