Stromfee.US · arbitrage levers · revenue transparency
D4.4
Detail view of the Real-time imbalance settlement for battery storage in US ISO markets — the feasible charge/discharge schedule, every transaction in $.
Imbalance energy: the result of unavoidable forecast deviations, settled at real-time LMPs. Highly volatile and decoupled from day-ahead — opportunity AND risk. Deviations between schedule and metered output settle at real-time LMPs. Concept page — settlement data is asset-specific.
US market roles, cleanly separated (FERC market design).
Imbalance arises from UNAVOIDABLE forecast error. A good SC minimizes uninstructed deviations — deliberately leaning against the system violates ISO market rules (FERC-approved tariffs).
Provides fast response; bears the risk that real-time prices turn against the position. Only sensible with good forecasting.
Highest risk/reward of the energy products. Not a base business case — incremental yield for experienced marketers.
Imbalance settlement is the ISO's accounting mechanism for schedule deviations — not a utility revenue stream.