Since December 1, 2024, the Hamburg-based power trader CFP FlexPower GmbH has been responsible for the dynamic procurement of electricity for Bremen’s Überseeinsel. The Überseeinsel urban development project is part of Bremen’s Überseestadt district and is creating a new residential and business quarter on 16 hectares.
Electricity (cross-product) price volatility has historically been closely linked to overall price levels. This trend seems to have ended in 2024 in Germany, as low marginal cost renewables are pushing the overall wholesale price level down, while peakers such as gas and batteries need to finance their investments in relatively few but increasingly expensive production hours
Over the last year we became increasingly involved with the “science” of modelling past and future revenues of battery energy storage systems (BESS) and now decided to shed some light on this practice. We believe that customers are being sold a lot of voodoo for science and that the incentives in this industry are not at all well aligned.
We are often asked how the financial optimization (or: arbitrage) of a battery across the different market places of the spot market works. We show this x-market optimization here by way of example focusing on the day-ahead spot market (hourly auction at 12 noon), intraday quarter-hourly auction (at 3 p.m.) and the so-called intraday continuous market (quarter-hourly products up to five minutes before delivery).
