Marginal Pricing is an economic model that explains a specific type of pricing. It posits that in competitive markets, the equilibrium price (where supply and demand are equal) is largely determined by the producers with the highest marginal costs (at the equilibrium point).

There are several forms of market participation for a Battery Energy Storage System (BESS) in energy markets. Check out our list of energy markets that are a good fit for flexibility from battery storage.

The market value is a metric that measures how valuable electricity coming from a particular plant is. It helps us understand how higher shares of renewables collectively lead to lower returns and its implications for the ongoing energy transformation.

Currently, electricity is largely auctioned on the exchanges through Pay-as-Clear Auctions, where the price for all suppliers is based on the highest bid. Pay-as-Bid Auctions, where each supplier is paid according to their individual bid, are intended to lower prices. But there's a catch.

The REMIT regulation, formally known as the "Regulation on Wholesale Energy Market Integrity and Transparency," is a pivotal legislative framework within the European Union (EU) that plays a crucial role in ensuring the fairness, transparency, and integrity of the wholesale energy market.

The following technical measures are important for evaluating the performance and suitability of a battery energy storage system (BESS) for a particular application, and they are often used to compare different battery storage technologies.

Uniform Pricing refers to a situation where all buyers in a market pay the same price for identical products or services. This contrasts with price discrimination, where different prices are charged for similar transactions, depending on the buyer or seller.