Tyba

The approval of NPRR 1224 in conjunction with NPRRs 1149 and 1186, which were enacted last month, has made the optimization equation for balancing revenue generation and state of charge management more complex. These protocol revisions have heightened the pressure on operators to ensure their #BESS state of energy is always able to fulfill obligations. 🔋 #ERCOT is able to manually release ECRS capacity from the SCED – so assets may be called more frequently 🔍 There will be increased scrutiny over ability to meet ancillary service obligations, with automated penalties levied to those who fail to provide Since 1224 is aiming to smooth volatility, all else equal, we could see less frequent and/or lower real time price peaks. If this compels operators to allocate more to ancillary services, they will face: ❗ Higher deployment risk if selling ECRS ✖ Greater penalty enforcement risk tied to depleting their state of charge Winning operators will proactively, and continuously balance revenue generation activities with state of charge management.

#ERCOT's recent approval of NPRR1224 means #energystorage asset operators should expect an increase in ECRS deployments, along with a reduction in real time price volatility. 𝗖𝗼𝗻𝘁𝗲𝘅𝘁: Last year’s introduction of ECRS led to an unintentional increase in energy prices for buyers. 𝘏𝘰𝘸 𝘥𝘪𝘥 𝘵𝘩𝘪𝘴 𝘩𝘢𝘱𝘱𝘦𝘯? 💵 The new product created a new revenue opportunity for energy producers. ⛔ As more assets were bidding into ECRS, their capacity was being held in reserves, and therefore were withheld or unavailable to be dispatched in the real-time energy market. 🙈 To ERCOT it appeared as though supply was not able to meet demand, despite the fact that the capacity was there – this is called artificial scarcity. 📈 Due to the appearance of scarcity, real time prices would increase.  In an effort to quell artificial scarcity, ERCOT is implementing NPRR1224, which enables them to manually release up to 500MW of ECRS capacity from the SCED at a 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝗽𝗿𝗶𝗰𝗲 𝗼𝗳 $𝟳𝟱𝟬/𝗠𝗪𝗵 when: 🚨 Energy demand exceeds the supply dispatched by SCED by 40MW or more ⏰ The imbalance lasts for 10 consecutive minutes 

Large companies with growing electricity needs are increasingly seeking partners to provide a reliable source of #cleanenergy so they can power their business and meet #decarbonization targets. This provides an opportunity for utilities, consumers, and power producers to forge relationships that help: 🌿 Reliably transition the grid 📈 Guarantee revenue ⚒ Offset upfront development costs We saw a great example of this with the announcements from Google earlier this month, featuring their Clean Transition Tariff (CTT). As an initial project under the proposed CTT, Google is partnering with NV Energy and Fervo Energy: - Developer (Fervo) enters into a long term PPA with the utility (NV Energy) - Consumer (Google) purchases energy from the utility (NV Energy) at a defined rate - Utility ratepayers have no adverse impacts by the CTT One of the central goals of the CTT is to provide utilities with flexibility to pursue dispatchable, carbon free energy (e.g. geothermal, nuclear, multi-hybrid projects with LDES) that may not currently be cost competitive with other resource options and avoid burdening ratepayers. Developers looking to maximize revenue & clean energy contributed to the grid when engaging in next generation structures like the CTT will need to model advanced project designs that account for offtaker demand and broader and wholesale market opportunities. Operators will also want to ensure they have an optimizer able to deliver on obligations, and deliver excess energy to the grid during peak hours.  ⬆ Incremental revenue for energy suppliers 🔆 Additional renewable energy contributed to the grid

⚠️ Big win for #energystorage last week! On June 20th, New York Governor Kathy Hochul announced that the New York State Public Service Commission approved the proposed framework to achieve 𝟔𝐆𝐖 𝐨𝐟 𝐞𝐧𝐞𝐫𝐠𝐲 𝐬𝐭𝐨𝐫𝐚𝐠𝐞 𝐛𝐲 𝟐𝟎𝟑𝟎. Some highlights include: • 1.5GW storage target by 2025 • 6GW storage target by 2030  • NY estimates a need for 12GW of storage by 2040 to support decarbonization efforts • Extension of the existing VDER program for retail and commercial storage • Adoption of the proposed Index Storage Credit (ISC) procurement for bulk (utility scale) storage • Requires #NYSERDA to run at least 3 bulk storage RFPs by 2030 with the first no later than June 30, 2025 • Includes a 20% procurement target for long duration energy storage (defined as 8 hours) in each bulk storage solicitation With the approval by the PSC / New York State Department of Public Service, NY is doubling down on its storage efforts and provides more certainty around the long term viability or storage investments in the state.

The Massachusetts Clean Peak Standard (or CPS) will help #renewableenergy developers and operators further increase returns on storage assets. In addition to using #batteries for energy arbitrage, ancillary services, solar firming, curbing curtailment, and more – operators leveraging this program are awarded for having renewable energy available to contribute in what were already the most lucrative hours. Projects able to capture Clean Peak Energy Credits (or CPECs) by combining accurate forecasting and operations that ensure operators deliver into peak hours, will have the winning formula to support grid reliability and maximize revenue as MA transitions the grid. You can read more about the CPS program and how to maximize the value of standalone and hybrid storage assets in CPS here. https://lnkd.in/gzCGbykC

Curtailment can have a major impact on returns for solar and wind assets in #CAISO. For operators feeling these negative outcomes - you are not alone. This year, we have already seen: ⬆ ~𝟰𝟬% 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗶𝗻 𝘀𝗼𝗹𝗮𝗿 𝗮𝗻𝗱 𝘄𝗶𝗻𝗱 𝗰𝘂𝗿𝘁𝗮𝗶𝗹𝗺𝗲𝗻𝘁 relative to the same period in 2023 ❌ Negative average real-time energy prices in nearly 25% of hours - that is 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗱𝗼𝘂𝗯𝗹𝗲 𝟮𝟬𝟮𝟯 Neglecting to effectively factor #curtailment into project forecasts can result in underperforming assets, and unmet revenue and production targets. To further complicate matters, renewable facilities will have different economic curtailment thresholds based on various factors such as ITC vs. PTC and REC value. Tyba’s platform helps operators account for curtailment in existing and planned projects, evaluate how #energystorage can alleviate the impact of curtailment, and operate co-located projects to optimize returns across assets. 𝗥𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼𝗱𝗮𝘆 to see how Tyba can help you maximize the value of your assets: https://lnkd.in/gTUpHJ6G

#batterystorage assets that do not proactively manage their state of charge (SoC) will fall short of their revenue expectations in #ERCOT this summer. With new regulations around monitoring and enforcing Failure to Provide (FTP) rolling out in less than one month, operators can expect: • 𝗡𝗣𝗥𝗥𝟭𝟭𝟖𝟔: QSEs must report SoC for the storage assets and have sufficient SOC to cover all ancillary service awards. Shortfalls will limit the RT energy actions that operators can take at the start of the operating hour. • 𝗡𝗣𝗥𝗥𝟭𝟭𝟰𝟵: A clawback will automatically be levied on storage assets that are unable to meet their ancillary service obligations. The minimum clawback will be the capacity payment and base point deviation penalties, but operators are exposed to uncapped SASM prices, and repeat offenders will be reported to the PUC. To understand the impact of these regulations, we took a look at the top performing storage assets in ERCOT in 2023, and quantified how these new rules would have impacted their returns during last summer’s lucrative August period. 𝐒𝐩𝐨𝐢𝐥𝐞𝐫 𝐚𝐥𝐞𝐫𝐭: many top performers would see significantly diminished returns. 

Energy storage is quickly becoming the grid reliability solution in California. In the past month, we've seen #energystorage discharge exceed 7.5GW and serve as the leading source of energy supply in #CAISO on multiple occasions. In its recent 2024 Summer Loads and Resources Assessment, CAISO predicted above average temperatures and extended heat events in the California interior. This is expected to drive up energy demand and, especially in the early evening hours, make #energystorage the only way to address peak load. To meet these expectations (which have a peak load + reserve margin of over 50GW), support grid reliability, and discharge into these high peaks, storage operators will need proactive operating strategies that account for price volatility and asset constraints!

With market volatility and uncertainty around when, and to what extent, ancillary services will be deployed, operators need a strategy that is responsive, and able to balance risk with reward. On May 8th, ECRS prices in #ERCOT eclipsed $2k per MW. This price spike coincided with sustained, higher than normal ECRS deployments over a multi-hour period spanning 7-9pm. For #energystorage resources, higher than normal deployments can deplete state of charge (SOC) and present operational and financial risk especially when stacking ancillary service obligations across extended periods. Operators caught unable to deliver on their obligations contribute to market risk, and can be subject to penalties and high priced real-time energy charging costs. Is your team maximizing operating revenue while mitigating risk?

Tyba co-founders Tom Thunell and Tyler Nisonoff joined TotalEnergies and a cohort of start-ups innovating in the electricity space to kick off the #TotalEnergiesOn #accelerator program. Some common themes emerged around the challenges that those in the #electricity sector are grappling with, and opportunities for technology solutions to help address them. Check out our blog to learn more about how: ☑ Innovation stands to yield outsized returns ☑ AI has immediate business impact ☑ Collecting, cleaning, and acting on data continues to be a challenge ☑ Assets must be flexible to capitalize on emerging opportunities in electricity markets https://lnkd.in/gDFhmEi5