Battery Storage Project Valuation & Operations Optimization

November 9-10, 2023 | Online :: Central Time

1123-battery-storage-project-valuation

The growth of renewable generation around the country is creating structural change in electricity markets, driving dramatic increases in volatility in energy markets and altering the needs for ancillary services.   Battery storage, given its fast-ramping capability, offers a unique opportunity for taking advantage of these changing market dynamics. The energy landscape is constantly changing, so it is more important than ever to know how to optimize battery storage across potential revenue streams to develop successful storage projects. 

This course is designed to provide expert insight on the rapid expansion of renewables and battery storage, offering strategies for resource planning, portfolio management, and operations. Practical case studies of valuation and optimal siting of potential standalone storage projects and storage paired with renewables will be used. By focusing on the new fundamentals of supply, this interactive course illuminates critical pathways to improve decision analytics on the most pressing challenges facing the energy industry.

Learning Outcomes

• Discuss the evolving landscape of energy and ancillary services across markets
• Review the keys to profitable battery projects
• Identify the optimal location for storage project to maximize its value
• Assess key capital and operating cost components for battery projects
• Discuss degradation, augmentation and optimal sizing
• Review bid offer optimization to maximize the net revenue for standalone storage and for storage paired with renewables
• Assess key risks in battery projects and potential hedging mechanisms
• Review batteries as a physical hedge for renewable portfolios
• Discuss the valuation of standalone and renewable energy-paired storage projects

Thursday, November 9, 2023 : Central Time

 

9:00 – 9:20 a.m. :: Overview and Introductions

9:20 – 10:30 a.m. :: Evolving Landscape of Energy and Ancillary Markets

• Evaluation of historical energy and ancillary prices
• Impact of changing supply stack and demand curves on power prices and volatility
• Day-ahead (DA) and Real-time (RT) price response to changing fundamentals
• Structural drivers of market price volatility and real-time price spikes
• Long-run cost of power and impact of technology
• Congestion persistence, basis evolution, and transmission limits

10:30 – 10:45 a.m. :: Morning Break

10:45 –11:30 a.m. :: Forecasting Future Market Conditions

• Forecasting prices, shapes, volatility, and long-run equilibrium
• New unit entry and exit
• Renewable curtailments and impacts on market prices
• Hourly and sub-hourly ramps and proposed capacity reserve imbalance markets
• Future of ancillary service markets and the opportunity cost of participation vs. real-time energy
• Sub-hourly price dynamics
• DART Spreads

11:30 a.m. – 12:00 p.m. :: Project Siting and Sizing

• Key metrics for battery project profitability
• High-level methodology of maps
• Heat maps for a sample ISO
• Discussion of areas of interest for siting storage
• Basis risk in battery and renewables and battery projects

12:00 – 12:45 p.m. :: Break for Lunch

12:45 – 1:45 p.m. :: Stacking of Revenue Streams

• Energy and ancillary services
• Capacity and limits on energy
• Battery and renewable system physical attributes
• Optimization of storage operations
  • Maximization of net revenue
  • Physical asset and market constraints
  • Naïve strategies
  • Imperfect foresight
  • Perfect foresight
• Asset-backed virtual or convergence trades
• Putting it all together

1:45 – 2:45 p.m. :: Elements of Bid Offer Optimization

• Decision making vs. operational platform
• Robust bid-offer optimization
• Conditional value at risk and other risk metrics
• Selecting markets in which the battery will participate (e.g., regulation, spinning reserve, day-ahead energy, real-time energy)
• Review of detailed valuation outputs and dispatch reports

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:15 p.m. :: Hedging of Storage and Renewables Plus Storage

• Hedge instruments to firm of future cash flows with renewables
• Convergence in efficient markets vs. risk premium of hedging
• Principal risk factors of market price, physical delivery basis risk
• Shape risk and price-volume correlations
• Rolling the hedge forward strategies

4:15 – 4:30 p.m. :: Q&A

4:30 p.m. :: Day One Program Adjournment

 

Friday, November 10, 2023 : Central Time

 

9:00 – 9:45 a.m. :: Case Studies of Valuation and Operations of Standalone Storage

• Measuring project return relative to risk
• Co-optimization of energy and ancillaries
• Robust stochastic sub-hourly modeling and residual risk
• Visualization tools for decision support

9:45 – 10:45 a.m. :: Case Studies of Valuation and Operations of Solar plus Storage

• Measuring project return relative to risk
• Problems with valuations run in deterministic models with high / low scenarios, and average price shapes
• Using storage to shift solar to peak load hours
• How battery plus solar system dispatched to sub-hourly RT prices with hedging leads to much less forward price risk
• Quantifying and understanding basis, shape and intermittency risk

10:45 – 11:00 a.m. :: Morning Break

11:00 a.m. – 12:30 p.m. :: Impact of Inflation Reduction Act (IRA) on Storage Use Case Modeling

• IRA storage-specific incentives and other enabling provisions
• Storage incentive(s) no longer restricted only to qualifying solar deployment
• Influence of direct cash payments and transferability provisions
• Supply chain and interconnection bottlenecks exacerbated by demand-supply imbalance
• Taking into account domestic content and other externalities

12:30 p.m. :: Course Adjournment

Vinayak Walimbe is Vice President of Emerging Technologies (North America) at Customized Energy Solutions, which he joined in 2011.  He leads the Emerging Technologies consulting practice in North America with a focus on energy storage and renewable integration. Mr. Walimbe is a chartered financial analyst with extensive experience in financial modeling and advisory in U.S. and international markets. His focus is on techno-commercial analysis of energy storage projects, strategy consulting and investment analysis of emerging technologies.  Previously, he was Manager at a Boston-based private-equity firm that invested in natural gas plants in the Middle East and North Africa. Prior to that he was involved in aircraft securitization and risk analysis of structured finance products in the aircraft industry. Mr. Walimbe holds a Master of Science degree from Georgia Institute of Technology, a Master of Engineering degree from V.J.T.I. Mumbai and an undergraduate degree in Electrical Engineering from Walchand College of Engineering (India).

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Battery Storage Project Valuation & Operations Optimization

November 9-10, 2023 | Online

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before October 06, 2023 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this event

Requirements For Successful Completion Of Program

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods Requirements For Successful Completion Of Program

PowerPoint presentations, group discussions, and active participation

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Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

Who Should Attend

This course will appeal to professionals and support staff involved in utility and power planning and procurement, portfolio management and analysis functions, including:

• Renewable Energy + Storage Developers
• Distributed Generation Experts
• Portfolio Managers
• Regulators and Regional Market Managers
• Reliability Analysts and Planners
• Investors
• Corporate Off-takers
• Structuring Analysts
• Power Operations Managers