Energy Storage

  • Puts a price to all types of energy storage
  • Make quick calculations, fully automated
  • Enjoy easy interfaces with market and other data
  • Fully embedded in KYOS Analytical Platform
The KyBattery Energy Storage Optimization model is our new solution to value energy storages, including battery and pumped hydro operations. As the energy transition progresses, the industry develops many new solar and wind parks. But it is true that we cannot consume all energy at the moment that it is generated by these sources. Energy storage units are hence the answer to store the surplus of solar and wind energy and balance the electricity system.

 

Energy storage: Pump hydro

KyBattery supports all types of energy storage assets, including pumped hydropower storage, battery storage, hydrogen storage, compressed air energy storage (CAES) and heat storage. All of them play an increasingly important role to support balancing the electricity system.

Our KyBattery tool supports traders and portfolio managers in electricity markets. The battery storage optimization software raises revenues from battery storage trading operations, provides accurate valuations and reduces risk with adequate hedge recommendations. The model uses advanced stochastics including Least Squares Monte Carlo techniques to capture the full optionality in battery storage facilities.

 

Benefits

Energy storage: What is a fair price?

solar and wind

The energy valuation model calculates the fair value of an energy storage. The model shows which part of the value is intrinsic and which part is extrinsic. To capture the extrinsic value, you will need to exercise a more active trading strategy.

Use the intuitive and realistic Monte Carlo simulation model with confidence to obtain your extrinsic values. The model applies a combination of forward and spot trading strategies to the simulated price scenarios, using dynamic programming and least-squares Monte Carlo. This type of valuation provides therefore a fair assessment of the future value.

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Hedging: Where are your exposures?

KyBattery shows on an hourly granularity which market trades are optimal to hedge risks and lock in profits. You can choose between intrinsic hedging and delta hedging, two strategies to secure profits.

Features

The KyBattery software includes all storage characteristics. This includes not only time and volume dependent charge and discharge rates and efficiencies, but also time varying costs, interruption rights and reduced availability because of maintenance.

Of course we have integrated KyBattery in our KYOS Analytical Platform. Automated data feeds ensure that you get up-to-date trading recommendations every day. Certainly it guarantees transparency, because analysts can evaluate each individual price scenario.

Methodology

Advanced Monte Carlo simulation techniques provide the basis for the KyBattery Optimization software, using our KySim model. Important characteristics are a mean-reverting multi-factor model coupled with long-term, short-term and seasonal dynamics.

Furthermore, the volatility term structure and other simulation inputs are easily derived from historical data with the accompanying calibration tool. Alternatively, you can also use implied option volatilities, by overwriting the historical volatility estimates.

Other Solutions

Portfolio management / CTRM

Does your company have a significant exposure to commodity prices? Then KYOS has a cost-effective solution for your daily management. The KYOS CTRM offers a detailed insight in your exposures, expected cash-flows, Mark-to-Market and more.

Read more ›

Risk analytics

KYOS offers unique software for measuring portfolio risks in energy and commodity markets. The risk analytics include Value-at-Risk, Cashflow-at-Risk and Earnings-at-Risk.

Read more ›

Price analytics

Market prices, market price forecasts and simulations are essential ingredients in energy and commodity management. KYOS offers a suite of functions and quant models to create and analyze all these price series.

Read more ›

Contact KYOS

KYOS
Nieuwe Gracht 49
2011 ND Haarlem
The Netherlands

E-mail: info@kyos.com
Tel: +31 (0)23 551 02 21

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