Solar Lattice

Concept

Energy arbitrage

ID
concept:energy-arbitrage
IRI
https://solarlattice.org/kb/concept/energy-arbitrage
Status
active
Also known as
load shifting, arbitrage, HOEP Energy Arbitrage
Category
Storage
Concept kind
market

Energy arbitrage means charging a battery when energy prices are low and discharging it during more expensive peak hours. For the storage operator this can be a source of income, because electricity prices can change throughout the day. It is a service measured in hours, and it is typically valued in US electricity markets. One extension of arbitrage is charging during periods of excess renewable generation and discharging when demand is high, which reduces curtailment. In power systems without electricity markets, the same idea is called load-levelling: operators charge batteries when there is excess generation and discharge them when there is excess demand. Storage market guides list energy arbitrage as a value stream next to demand charge management and demand response, for example HOEP energy arbitrage in Ontario. Hybrid inverter manuals, such as those for the Solis S6 series, include grid-tied layouts that do energy arbitrage, in some cases with backup.

<!-- review notes

Claims

related_to

c1 drafted · lead Curtailment

One extension of arbitrage is charging storage with low-cost energy during excess renewable generation, which reduces renewable curtailment.

c2 drafted · lead Battery energy storage system

Arbitrage is listed as one of the services a utility-scale battery can provide, with a service duration of hours.

c3 drafted · lead Load leveling proposed

Load-levelling is described as the form arbitrage takes in power systems without electricity markets.

c4 drafted · lead Demand charge

Scope: regions Arizona proposed

Energy arbitrage appears next to demand charge management as a storage value stream in market qualification guides.

review note: support check: partial - Value stream lists show Demand Charge Management and Energy Arbitrage, but the layout doesn't clearly state adjacency or region AZ in the passage.

c5 drafted · lead Demand response

Scope: regions Ontario proposed

In Ontario, HOEP energy arbitrage is listed next to demand response as a storage value stream.

review note: support check: partial - Demand Response and HOEP Energy Arbitrage appear together in the value streams list, but Ontario is not stated in the passage.

Referenced by

Data