Case Study
How we maximise your profit
APPLIES TO
WIND AND SOLAR
STAGE
Commissioning and operations
Frequently changing the price that you want to sell your energy for – or actively rebidding, is now commonplace as wind and solar participants seek to avoid negative energy prices and high FCAS costs whilst also minimising being constrained off.
However, binary-type outcomes that bring your asset in and out of the market may increase your costs and reduce your profit, so it is vital that as asset owner you understand the full picture when formulating your bidding strategy.
Whilst automated bidding software has a role in some situations, the most successful owners use rather than rely on software to maximise their profit.
CHALLENGE
You need to understand the factors that influence your profit but they are complex and demand a deep and up-to-date understanding of the NEM. They include energy and FCAS prices, constraint equations, transmission capacity, the activity of other assets and the effect your own actions may have. You must also understand the operational capability of your asset. Understanding, tracking change and responding to change is a full-time job.
SOLUTION
Overwatch Energy used its significant expertise in NEM pricing and dispatch to work with a client over several months to carefully develop and refine their bid strategy for their large and recently commissioned wind farm.
We took time to understand their commercial arrangements and applied that to the location to give tailored advice relevant to their situation. We also analysed and accounted for the technical capability of the plant and recommended adjustments made when factors changed.
BENEFIT
As well as reduced FCAS Contingency cost and less loss from constraints, the client has enjoyed a steady and clear reduction in the clients Causer Pays Factor – the lowest it has ever been since full generation. This reduces their ancillary services costs and increases their profit.
