Storage investment model

Cornwall Insight Australia’s ‘Storage investment model’ (SIM) is designed to inform and assist market participants on storage investments, enabling project optimisation, risk assessment, independent evaluation and due diligence.

The ‘Storage investment model’ (SIM) is an optimisation model that utilises granular settlement period market price forecasting data from our industry recognised and widely adopted modelling tools:

  • ‘Benchmark Power Curve’ price forecast and
  • ‘FCAS price curves’ which forecasts all eight FCAS markets

The SIM calculates 15-year storage revenues in all nine markets (eight FCAS markets and the energy market) based on project specifications and the selected operational strategy.

The service overview

Our SIM service provides you with either once off or regularly revised revenue forecasts tailored to your project.

Active value add
The SIM report includes an explanation of the physical and market assumptions, storage costs and revenues, optimised trades as well as policy and regulatory matters.

Cornwall Insight Australia’s team of storage experts engage with clients to present findings, review analysis and discuss recommendations to ensure outcomes from the model results are actionable and impactful.

Ease of integration
The SIM revenue data is calculated down to each granular settlement interval. For ease of analysis and review, we aggregate data to weekly, monthly, quarterly or annually as required. Revenues are split out for each of the nine markets (eight FCAS markets and the energy market) in a clear excel spreadsheet. Other data outputs include trading day snap shots and throughput curves.

Operations and due diligence
SIM provides a valuable tool to regularly evaluate performance, warranties and review bidding protocols through modelling the optimal storage revenues, costs and throughput.

For more information on our ‘Storage investment model’ (SIM) service, please download the service specification, or contact Benjamin Macey on +61 417 203 360 or at b.macey@cornwall-insight.com.au