Stromfee.US · arbitrage levers · revenue transparency
D4.7
Detail view of the Regulation Down for battery storage in US ISO markets — reserved capacity is paid in $/MW per hour, co-optimized with energy.
Capacity product: revenue comes from RESERVING megawatts, not from moving energy. US ISOs co-optimize energy and ancillary services in one clearing — the battery is awarded whichever use is worth most each hour. Capacity bid to reduce output (or increase charging) on ISO signal — a natural fit for batteries that want to charge anyway. Live US regulation price integration is planned.
US market roles, cleanly separated (FERC market design).
Earns by RESERVING capacity ($/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.