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A break down of the gross margin by service for both the Algo ‘what if’ and the manual actual bid performance (see gross margin description below).
The difference between Algo and manual gross margin these values. Note that the difference is defined as “Algo ‘what if’ - Manual Actual”
Specific business case effects on gross margin that can be attributed to items specifically referenced in the original business plan, namely:
The service allocation stack (SAS) for lowerFCAS and RaiseFCAS.
Gross margin difference is attributed to lowerFCAS SAS when Algo expected energy target is greater than manual expected energy target.
Gross margin difference is attributed to raiseFCAS SAS when Algo expected energy target is less than manual expected energy target.
Avoiding negative regulation gross margin for either lowerReg or raiseReg due to the change in generated energy.
Gross margin difference is attributed to Algo avoiding negative gross margin if the regulation volume is zero for Algo, and to avoid double counting for service allocation stack, the Algo and manual energy bid must be the same.
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The unit of all values is $. The exception is volume which is MW/5min. Note that energy volume is the average totalcleared of the dispatch interval ending and beginning. |
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Gross Margin Description
As a first order approximation, total gross margin includes the revenue gained from providing a service plus the impact on the energy produced and the fuel used in providing an FCAS service.
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