Capacity Markets guarantee reliability by paying producers to pledge generation for future years. Compensation for a capacity market may come from participating in the market (see Capacity Price) and from the energy discharged during an event (Energy Price).
Select the Capacity Market check box on the Applications page to begin your setup.
Note: If you select the capacity market, you must include storage.
To delete an energy market, click on the red X 
in the upper right hand side.
Capacity Market Events
Capacity Market Events define when the BESS should discharge to the capacity market. It will attempt to discharge up to the contracted storage capacity. If it cannot, which is possible, for example, for systems that are not allowed to charge from the grid, it will reflect revenue accordingly (see below).
You may define events to be called randomly or you may enter specific dates.
Random Dates
Use the schedule to define when random events may occur.
Note: BESS is required for the Capacity Market only during events; it may participate in other revenue opportunities when there is not an event.
Specify the number of events per year and the event duration. You can also specify that the events must be chosen from the N days with the highest energy prices.
Specific Dates
Specific dates allows you to enter a list of dates on which the BESS should be discharged. You might consider looking at historical events to define when specific events occur.
Enter the event date and duration and click Add Event.
Capacity Price
You may define a capacity price that is paid yearly or monthly.
If yearly, there will be one payment made at the lowest BESS discharge during an event. It is assumed that the capacity bid was made at this level and no penalties were incurred.
If monthly, there will be a payment made each month at the lowest BESS discharge during an event that month.
It is assumed that the capacity bid was made at the correct level for each month and no penalties were incurred. For months with no events, the contracted storage capacity is used.
Monthly prices can also be set individually by selecting the monthly icon. Months can be excluded by specifying zero for those months. Note that the random date schedule should exclude those months as well.
You may choose to enable the Capacity price escalator feature to escalate capacity prices during the project lifetime.
Note: Enabling price escalators may increase calculation time.
Set the contracted storage capacity to specify how much of the BESS should be discharged to capacity market events. The remaining capacity can be used for other revenue streams.
Energy Price
When an event is called, the discharged energy can be compensated at the selected energy market price or at a flat rate.
The flat rate can be escalated during the project lifetime. When compensating according to the energy market price, the energy market escalator is used.
Note: Enabling the price esclator feature may increase calculation time
See Also
