Day Ahead Market

Question 1

day ahead energy market

Answer 1

financial market where purchase and sell energy at financially binding DA prices for the following day
economic dispatch engine at iso level

Question 2

nodes

Answer 2

prices are exposed at these levels
look at historical persistence of energy arbitrage for forecasting

Question 3

renewables forecast errors

Answer 3

can be high, like forecasting weather, versus demand forecasts

Question 4

battery dispatch strategy for da
(same points for rt)

Answer 4

bid energy storage da bid
energy arbitrage revenue
ancillary services bid (spin/reg)
forecasting da energy prices

Question 5

perfect foresight energy arbitrage

Answer 5

historical realized prices, use optimization model to dispatch storage to prices
backcast to give you prices of storage

Question 6

price shape forecast

Answer 6

guides when to charge, discharge, how long to charge, partial charges/discharges

Question 7

price forecast toolbox

Answer 7

probabilistic price distribution
ai forecasting
econometric - implied heat rate based on fuel used majority of hours or marginally

Question 8

energy arbitrage profits

Answer 8

sales injecting energy at node less purchases or energy pull
persistence to this cashflow

Question 9

perfect foresight model

Answer 9

tbd, with discount (like 20%), used at upper end

Question 10

ai dispatch

Answer 10

not a lot of transparency yet
used by tesla, stem

Question 11

implied heat rate method

Answer 11

econometric method
stochastic method

Question 12

algorithmic trading

Answer 12

none done in rt market due to lack of storage, physical market not financial
done in da market, virtuals and financial players creating liquidity

Question 13

hurdle rate for battery project

Answer 13

look for double digit IRRs
when do you get money back? look at cumulative cashflow basis