c1 drafted · lead Curtailment
One extension of arbitrage is charging storage with low-cost energy during excess renewable generation, which reduces renewable curtailment.
- NREL-BESS operating FAQs
sec=h6h=cc6e87105ea7
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
related_toc1 drafted · lead Curtailment
One extension of arbitrage is charging storage with low-cost energy during excess renewable generation, which reduces renewable curtailment.
sec=h6 h=cc6e87105ea7c2 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.
sec=h6 h=cc6e87105ea7tbl=1.r1 h=cf8090720bcfc3 drafted · lead Load leveling proposed
Load-levelling is described as the form arbitrage takes in power systems without electricity markets.
sec=h6 h=cc6e87105ea7c4 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.
tbl=3.r3 h=0c109013d0dbtbl=2.r3 h=0c109013d0dbreview 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.
tbl=18.r3 h=248722cdd089tbl=2.r3 h=248722cdd089review 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.
related_to c1