Battery Storage Frequency Regulation Revenue Planner

Project how much frequency regulation revenue a grid battery can settle by blending ISO clearing prices, available capacity, dispatch hours, and performance multipliers, then adjust duration to translate energy into accredited power.

Deliverable energy in megawatt-hours after accounting for state-of-charge limits and degradation.
Average day-ahead or real-time pay-for-performance clearing price in dollars per MW-hour.
Number of market hours per day you expect to offer regulation up and down services.
Round-trip AC-to-AC efficiency percentage expected during the modeled period.
Divide usable energy by duration to convert into dispatchable power. Leave blank to assume a 1.0-hour battery.
Mileage or performance score applied to settlements. Leave blank to keep a neutral 1.00 multiplier.

Financial model for informational purposes; validate against ISO settlement statements before investing.

Examples

  • 40.0 MWh capacity, $42.00 clearing price, 6.0 dispatch hours, 88.0% efficiency, 4.0-hour duration, multiplier 1.15 ⇒ Gross monthly revenue: $86,940.00 | Net monthly revenue: $76,507.20 | Annualized net per MWh: $22,952.16 per MWh-year
  • 18.0 MWh capacity, $48.00 clearing price, 5.0 dispatch hours, 90.0% efficiency, 2.0-hour duration, multiplier 1.10 ⇒ Gross monthly revenue: $71,280.00 | Net monthly revenue: $64,152.00 | Annualized net per MWh: $42,768.00 per MWh-year

FAQ

Can I include other revenue streams?

Yes. Build independent projections for capacity payments or energy arbitrage and add them to this output for a portfolio-level view.

How should I treat degradation?

Lower the usable capacity or round-trip efficiency each year to mirror degradation, then rerun the model to refresh revenue expectations.

Why use a performance multiplier?

Frequency regulation markets often layer on a mileage or precision score above 1.00 for fast, accurate assets. Use ISO settlement history to select a realistic multiplier.

What if the clearing price is quoted per kW instead of per MW?

Multiply the per-kW rate by 1,000 to convert it into dollars per MW-hour so the inputs stay consistent.

Additional Information

  • Revenue assumes a 30-day operating month; adjust dispatch hours to reflect expected availability and planned outages.
  • Duration converts stored energy into deliverable megawatts using power = energy ÷ duration.
  • Performance multipliers approximate ISO pay-for-performance uplifts; calibrate with recent settlement data where possible.
  • Round-trip efficiency scales gross settlement revenue to show net cash after energy losses.

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