Revenue Analysis

We have provided cashflow models to support the assessment of energy storage investments and to help vendors build a viable energy storage business. We provide value through our:

  • Proven and tested modelling framework
  • Comprehensive list of cost and revenue line items
  • Default values provide a reference point before accurate vendor quotes are available
  • Technical metrics from our storage simulation tools

Revenues

We have worked extensively on revenue stacking, including:

  • Frequency response (EFR, dynamic and non-dynamic FFR)
  • Reserve services such as STOR
  • Capacity Market contracts
  • Triad and Red Band avoidance, for behind-the-meter storage
  • Energy trading revenues
  • The impact of degradation on revenues

We have also modelled Demand-Side Response (DSR) revenues.

Costs

We have a detailed model of project costs covering:

  • Grid or Site Connection
  • Engineering, Procurement and Construction (EPC)
  • Operating expenditure (OPEX), including energy throughput, maintenance, warranty and other ongoing costs

Financial Analysis

Our cashflow models provide Internal Rate of Return (IRR) and show Net Present Value (NPV). We can also incorporate probability of success in securing future revenue streams and financing models for capital expenditure (CAPEX).