Detail view of the Regulation Up for battery storage in US ISO markets — reserved capacity is paid in $/MW per hour, co-optimized with energy.
Capacity product: revenue comes from RESERVING megawatts, not from moving energy. US ISOs co-optimize energy and ancillary services in one clearing — the battery is awarded whichever use is worth most each hour. Capacity bid to increase output (or reduce charging) on ISO signal. Live US regulation price integration is planned.
US market roles, cleanly separated (FERC market design).
Earns by RESERVING capacity ($/MW per hour, co-optimized with energy in DAM/RTM). On dispatch, energy settles separately at the LMP — mileage/performance payments apply for regulation.
Keeps the capacity available (state-of-charge management required); receives a share of the ancillary-service award.
Ancillary services give steadier $/MW than pure spot arbitrage — but US regulation markets are shallow and saturate quickly as storage build-out grows.
The ISO procures these products to hold 60 Hz and cover contingencies; the utility does not trade them.