Monthly Report

Sassor releases control logic for FIP solar assets co-located with battery storage

September 18, 2024
Power Trading
Sassor released control logic for FIP solar assets co-located with batteries.

Sassor developed and successfully backtested the profitability of its battery storage control logic for solar assets subsidized through the feed-in-premium (FIP) scheme, the aggregator announced on September 10, 2024.

The FIP scheme pays generators a premium calculated based on a number of factors. The premium, however, is not paid for power supplied during the 30-minute time blocks when the market price is at the 0.01 yen/kWh floor, such as at times when renewable generation is curtailed.

To avoid feeding power into the grid at those times, Sassor’s logic forecasts when such periods will occur and charges batteries at those times. It then scheduled the power to be sold in the day-ahead market at times when power prices are expected to be high, maximizing not only the wholesale market revenue but also enabling generators to be paid the premium for power that would otherwise not have been eligible to receive it.

In addition to using the logic to control assets, Sassor is also offering simulation service allowing asset owners, battery manufacturers, and other stakeholders to estimate the profitability of co-locating batteries with solar assets based on historic data.

Japan is currently transitioning away from a feed-in-tariff scheme, which pays a fixed amount per kWh generated, to a market-based FIP scheme, which incentivizes generators to supply power when and where it is needed.

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