Arbitrage
Also known as: Energy Arbitrage
Charging a battery during low-price periods and discharging during high-price periods to profit from electricity price differences.
In energy storage
Arbitrage revenue depends on intra-day price spreads, which vary significantly by market and season. A typical 2-hour duration BESS may cycle once or twice per day for arbitrage, trading across day-ahead and intraday markets. Each cycle contributes to degradation, so the arbitrage margin must exceed the cost of cycling — round-trip efficiency losses, degradation cost per cycle, and any grid fees.
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