Revenue Floor Trading Model

The Revenue Floor Trading Model aims to ensure stable returns by prioritizing participation in ancillary capacity markets. This strategy provides predictable revenue streams and reduces the risk associated with real-time price fluctuations.

Strategy Overview

• Market Participation:
  • Max 10% Day-Ahead market participation
  • No Intraday market participation
  • No aFRR Energy market participation
  • Focus on FCR and aFRR capacity auctions

Key Features

• Participation in FCR and aFRR capacity auctions to secure fixed capacity payments
• State of charge constraints (35–60%) to limit exposure to spot market volatility
• Pure ancillary market strategy focusing on guaranteed ancillary service revenues
• Allocation of up to 10% of BESS power capacity to Day Ahead markets for incremental gains
• Used to establish a foundation for structuring tolling agreements and other revenue-secure mechanisms

Risk Assessment

• Risk Level: Low-Medium Risk
• Revenue Profile: Stable Revenue Floor with predictable returns