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Report Types
Actual (Manual) vs Algo ‘what if’
The first report compares the gross margin of Actual Manual bids against Algo “what if” bids. Other metrics such as the difference in volumes are also reported.
Note that as manual bids are replaced by Algo bids, new benchmarking reports will compare Algo actual gross margin against Algo “perfect hindsight” gross margin where perfect hindsight is calculated by rerunning the Algos using actual price outcomes to formulate optimal volumes from which gross margin is derived.
Using the Performance Report
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Report content
Content
A break down of the gross margin by service for both the Algo ‘what if’ and the manual actual bid (see gross margin description below).
The difference between these values. Note that the difference is defined as “Algo ‘what if’ minus Manual Actual”
Specific effects on gross margin that can be attributed to certain market conditions:
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. Therefore the algorithms increase energy generation in order to increase lowerFCAS gross margin resulting in overall greater gross margin.
Gross margin difference is attributed to raiseFCAS SAS when Algo expected energy target is less than manual expected energy target. Therefore the algorithms decrease energy generation in order to increase raiseFCAS gross margin resulting in overall greater gross margin.
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 Algo regulation volume is zero, and to avoid double counting for SAS (above), the Algo and manual energy bid must be the same.
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Definitions
Gross Margin
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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