Reduxi explainer · Battery revenue
How batteries earn money: day-ahead prices and ancillary services
A battery earns money in two ways: it buys electricity when it is cheap and uses or sells it when it is expensive, and it gets paid for keeping the grid stable. Reduxi runs both on the same battery, within the limits you set. You see the result in the Reduxi app.
01Day-ahead prices
What are day-ahead prices?
Day-ahead prices are the electricity prices for the next day, set on the power exchange. They are published the afternoon before and change every 15 minutes. At night and at midday with strong solar, prices are often low; in the evening peak they are high.
Reduxi supports fixed prices, Time-of-Use tariffs and dynamic 15-minute Day-Ahead (SPOT) prices. Dynamic prices need a supplier or a market access that allows them.
02Earning from price differences
How does a battery earn money from day-ahead prices?
The battery charges in the cheap 15-minute periods and discharges in the expensive ones. The difference between the two prices is the benefit, and it repeats every day. Your own solar power charges the battery first when that is the better choice.
The Reduxi controller does this for you. It follows your limits, such as the minimum and maximum battery level. The Reduxi AI Energy Manager adds forecasts of your consumption, solar production and electricity prices, so the plan is ready before the price moves.
To see what a battery earns from day-ahead prices at your site, use the Reduxi BESS-calculator.
Charge when cheap
The battery fills in the low-price 15-minute periods.
Discharge when expensive
Stored energy covers your load or goes to the market at the peak.
Solar first
Your own solar power charges the battery when that is the better choice.
03Grid services
What are ancillary services?
Ancillary services keep the grid frequency stable. When supply and demand are out of balance, the transmission system operator (TSO) asks flexible assets to add or reduce power. Batteries react fast, so they are well suited for this.
There are three common products. FCR reacts automatically to frequency changes. aFRR is activated automatically by the TSO. mFRR is activated manually by the TSO.
FCR
Reacts automatically to frequency changes.
aFRR
Activated automatically by the TSO.
mFRR
Activated manually by the TSO.
04Earning from grid services
How does a battery earn money from ancillary services?
The battery is paid for being available and for the energy it delivers when the TSO activates it. One small battery is too small for the market on its own. The Reduxi FLEX platform solves this: it aggregates many assets into one portfolio and connects them to the TSO.
FLEX calculates the available capacity of the portfolio, places the bids, sends the setpoints to the individual batteries when the TSO activates them, and records every event for reporting and settlement. It supports FCR, aFRR and mFRR, and it is built for smaller assets as well as large ones.
Ancillary services are live in Slovenia. The Slovenian TSO ELES has activated Reduxi’s aFRR. They are not available in other countries yet.
05Both on one battery
Day-ahead trading and ancillary services on one battery
The controller decides how to split the battery between ancillary services, peak shaving and price trading, based on what is financially optimal. It stays inside the limits you set, such as the minimum and maximum battery level.
The controller connects to the Reduxi FLEX platform for ancillary services. The internet connection is only necessary for the AI Energy Manager and for the FLEX connection; control runs on site.
06Veelgestelde vragen
Veelgestelde vragen
What is the difference between day-ahead and intraday prices?
Day-ahead prices are set the day before for every 15-minute period of the next day. The intraday market lets you trade within the same day, so you can react to changes in supply and demand.
What are FCR, aFRR and mFRR?
They are the three common ancillary service products. FCR reacts automatically to frequency changes, aFRR is activated automatically by the TSO and mFRR is activated manually. The Reduxi FLEX platform supports all three.
Do I need the FLEX platform for day-ahead trading?
No. The Reduxi controller optimizes your battery for dynamic day-ahead prices on its own. FLEX adds the connection to the TSO for ancillary services.
Can a small battery take part in ancillary services?
Yes, through aggregation. FLEX combines many assets into one portfolio, and it is built for smaller assets that are often overlooked on the market. Today this works in Slovenia.
Do I need a battery to use dynamic prices?
No. The controller also shifts EV charging and heat pumps to cheap periods. A battery adds more room to store cheap energy and use it when prices are high.
Start earning with your battery
Bekijk de Reduxi BESS-controller en EMS, the Reduxi FLEX platform en Contacteer Reduxi.
