Does Modo Energy monitor degradation?

No, as there is no publicly available data on asset degradation. Degradation is very difficult to model, as it is a function of throughput, environmental conditions, the cells themselves, age, depth of discharge, etc etc...

Therefore, we do not include any degradation-related costs of high throughput operational strategies in the benchmark indices.

Do we include Capacity Market revenues?

Capacity Market contracts are included in the GB BESS Indices by default. However, Benchmark Pro subscribers can toggle off longterm contracts (which includes Capacity Market revenues) in the Index Breakdown.

Why does an asset show wholesale revenues on the Index Breakdown but not in Revenue Operations?

This is probably because the asset is a non-Balancing Mechanism unit (BMU). As wholesale revenues are only indicative for non-BMUs, we do not report wholesale activity below 1-month granularity. For example, a non-BMU may show wholesale revenues on the monthly Index Breakdown, but will not show wholesale activity on the asset's revenue operation chart for the same month.

Is asset availability included in the Index?

We report net revenues, and normalize our Indices to total asset capacity, as per it's name-plate capacity. We do not adjust revenues or Indices based on an asset's availability, which might limit how much the battery can charge or discharge.

For example, for the monthly indices we sum the total revenue achieved across the month, normal this to MW, and divide by the number of hours in the month to calculate the GBP/MW/h index. Therefore, asset unavailability (planned or unplanned) results in a lower index revenue.

How do the index values relate to asset revenue?

Our Index values are the revenue an asset would generate, normalized to either it's energy or power capacity, over a period of time. Examples include GBP/MW/h, USD/MWh/year.

For example, a 50 MW, 100 MWh asset with an Index value of 10 GBP/MW/h for settlement period 40 indicates that the asset would generate a revenue of 10 GBP/MW in one hour, if it maintained the GBP/MW revenue it achieved in settlement period 40, for one hour. Therefore, because settlement periods are half an hour long, and the asset is 50 MW, this asset generated 5 GBP/MW, or 250 GBP in settlement period 40.

How is contracted power calculated?

In the Index Breakdown table we indicate the percentage of contracted power for each asset. This is the average of power contracted to provide frequency response / asset rated power, for periods when the asset is contracted into frequency response services. We only consider periods when an asset holds a frequency response contract to account for downtime of non-BMU assets, which we have no visibility over other than frequency response contracts.

Why do reported revenues differ from clearing prices?

The revenues we report in the index are normalised across the rated power of each asset. Therefore, if an asset contracts only a portion of it's capacity into a particular market, the GBP/MW/h value we will report for that market for that asset will be lower than the clearing price of the market.

For example, if a 25 MW asset contracted 20 MW into DCH at 5.9 GBP/MW/h, we would report a revenue of (5.9 * 20) / 25 = 4.72 GBP/MW/h.