Fraunhofer Institute for Algorithms and Scientific Computing SCAI
Fraunhofer Institute for Algorithms and Scientific Computing SCAI

SCAI Battery Value Indicator

Battery Value Indicator reveals revenue potential of energy storage systems

How much can a battery earn on the electricity market in a single day? The SCAI Battery Value Indicator (SBVI) provides the answer. This daily reference value shows the revenue that standard battery configurations could generate through smart charging and discharging strategies. The calculations are based on real market data from the previous day, along with practical assumptions about trading strategies, liquidity, and technical constraints.

More Than Just a Price: The Strategy Behind It

The short-term market value of storage systems comes from intelligent coordination across multiple trading platforms. Building on this idea, the SBVI simulates this process in three progressive stages.

First, a preliminary schedule is set on the day-ahead market, which is the main auction from the previous day. In the intraday auction, positions are adjusted based on updated forecasts. The key difference compared to many other models is the use of a rolling intrinsic strategy. Operations are continuously re-optimized until five minutes before delivery. This approach relies on actual trading data from the current day rather than static forecasts.

This blend of strategic planning and flexible real-time adaptation, as demonstrated in the previous stages, reflects how professional traders operate today.

Three battery types, three perspectives

Not all batteries charge or discharge at the same speed. Therefore, the SBVI therefore distinguishes between three scenarios representing different technical characteristics. Classification is based on the C-rate. The number indicates how long it takes for a battery to fully charge or discharge.

  • SBVI-1: 1-hour batteries with particularly fast charging and discharging capabilities
  • SBVI-2: 2-hour batteries, the most common standard configuration
  • SBVI-3: 4-hour batteries that deliver energy over a longer period

Fraunhofer SCAI analyses show that batteries with high power flexibility can better capitalize on short-term price fluctuations. However, the trading strategy remains the deciding factor. Relying solely on the day-ahead market often leaves revenue potential untapped. Combining the intraday auction with continuous Intraday trading significantly boosts returns.

The choice of trading products also matters. Calculations show that using 15-minute products in intraday trading generates average returns nearly 20 percent higher than those from using only hourly products. This finer granularity allows for more precise responses to short-term price movements—an advantage that slower batteries cannot fully exploit, while faster systems benefit the most.

Why the SBVI matters

The electricity market is growing more complex. Volatile renewable energy sources lead to significant price fluctuations. This opens opportunities for storage systems but also introduces risks. The SBVI helps stakeholders understand this dynamic. It delivers a daily, objective reference value that reveals trends in battery economics. The value is free from individual outliers or theoretical idealizations.

Transparence and practicality

The SBVI is designed with real-world conditions in mind. It accounts for actual market frictions such as bid-ask spreads and technical limits, including charge cycle restrictions. This makes it a reliable tool for assessing business models.

Disclaimer: The SBVI indicators are provided for informational purposes only. They are not designed, maintained, or authorized for use within financial contracts or as benchmarks under applicable EU regulations on index calculation.