Using multi-market simulation to estimate energy and reserve market returns

VIBECO’s simulation service helps the customers to analyze their participation in the energy and reserve markets and the resulting returns. If the investment target is, for example, renewable energy production, electricity storage solutions or electrification, such as the partial replacement of a gas boiler with an electric boiler, market simulation provides important additional information on the benefits and profit expectations from energy and reserve market participation.

In addition, simulation can be used to assess the benefits of bringing an existing property to the market.

The simulation of participation in the energy and reserve markets considers the technological boundary conditions of the asset, such as the dimensioning of the battery and cycle targets, or the technological response limits of the asset. In addition, the simulation takes into account market participation in terms of multi-market optimization. Forecast and historical data from all markets are considered, as well as the costs of the electricity connection, other costs, benefits and returns.

Simulation of participation in the energy and reserve markets provides important information to make informed decisions

The simulation creates different scenarios of the site’s use and energy market choices and models them accurately. The simulation provides important information for the investment decision and technical considerations for the implementation of the project.

Simulation can be used to combine the requirements of the site’s normal operations with market participation. In this way, it is possible to comprehensively investigate the opportunities of the property in different markets and form an overall picture of the profitability of market participation. The simulation can be combined with several sites and simulate, for example, the interaction between a solar power plant and a battery storage facility.

Multi-market optimization complexity

Benefits of multi-market simulation

Multi-market simulation brings the following benefits:

  • Allows you to compare different assets and scenarios.
  • Helps to assess the profitability of the market participation of an existing property.
  • Provides information on the interaction of several assets in the market.
  • Provides realistic information on the throughput of market offerings.
  • Helps to plan future investments or operations.

    • As a result of the simulation, the customer obtains:

  • Monthly estimate of potential returns with different combinations
  • An assessment of future opportunities in the market based on different scenarios
  • Profit distribution between different markets