Description
purchasedMwh = deliveredMwh/efficiency; grossMargin = deliveredMwh*sellPrice-purchasedMwh*buyPrice; breakEvenSellPrice = buyPrice/efficiency.
A generation or storage spread compares revenue with specified fuel, carbon, purchase or hedge costs. It is a local margin on a common output-energy basis, rather than complete profit or proof a dispatch or trade is feasible.
purchasedMwh = deliveredMwh/efficiency; grossMargin = deliveredMwh*sellPrice-purchasedMwh*buyPrice; breakEvenSellPrice = buyPrice/efficiency.
When to use this tool
Use Battery Roundtrip Loss Arbitrage Gap when checking one declared generation, storage or hedge-margin contribution.
How to use the tool and how it works
- Enter deliveredMwh, buyPrice, sellPrice, roundtripEfficiency. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read purchasedMwh, grossMargin, breakEvenSellPrice. Use the output convention below.
Require nonnegative deliveredMwh and roundtripEfficiency in (0,1]. purchasedMwh = deliveredMwh/efficiency; grossMargin = deliveredMwh*sellPrice-purchasedMwh*buyPrice; breakEvenSellPrice = buyPrice/efficiency.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| deliveredMwh | Delivered Mwh | Required. Finite number; minimum 0. |
| buyPrice | Buy Price | Required. Finite number. |
| sellPrice | Sell Price | Required. Finite number. |
| roundtripEfficiency | Roundtrip Efficiency | Required. Finite number; maximum 1; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| purchasedMwh | Purchased Mwh | Required. Finite number. |
| grossMargin | Gross Margin | Required. Finite number. |
| breakEvenSellPrice | Break Even Sell Price | Required. Finite number. |
{
"input": {
"deliveredMwh": 8,
"buyPrice": 50,
"sellPrice": 100,
"roundtripEfficiency": 0.8
},
"output": {
"purchasedMwh": 10,
"grossMargin": 300,
"breakEvenSellPrice": 62.5
}
}Limitations and assumptions
- Prices use currency/MWh and may be signed. The break-even price excludes degradation, capacity costs, fees, operating constraints and charging/discharging timing.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete operating costs, technical constraints and settlement terms to assess a real dispatch, hedge or investment.
References
Similar or alternative tools
- Carbon Cost Pass Through One Mwh
grossCarbonCost = emissionTonnesPerMwh*carbonPricePerTonne; priceIncrement = grossCarbonCost*passThroughFraction.
- Dark Spread Emission Cost Term
fuelCost = coalPrice*fuelUnitsPerMwh; carbonCost = emissionsPerMwh*carbonPrice; cleanDarkSpread = powerPrice-fuelCost-carbonCost-variableCost.