What Is a Multi-Market Approach?

A multi-market approach is the coordinated participation of an asset in several electricity markets. It is particularly relevant for battery energy storage systems, which can flexibly adjust their charging and discharging power. Typical combinations include day-ahead trading, intraday trading and balancing services. Participation can alternate over time or take place in parallel, provided technical limits, market rules and existing commitments are respected.

Multi-Market at a Glance

• A multi-market approach enables an asset to access different revenue opportunities.
• Optimisation allocates available power and storage capacity to compatible market activities.
• Trading optimisation and local asset control perform different tasks and must be coordinated.

How Does Cross-Market Optimisation Work?

Cross-market optimisation evaluates expected prices, revenues, costs and existing trading positions. It also considers the battery’s state of charge, available charging and discharging power, usable storage capacity and grid connection limits. These factors determine how much flexibility remains available in each period.

In day-ahead trading, electricity is traded for delivery the following day. Intraday trading allows subsequent adjustments closer to delivery, for example when prices or forecasts change. Balancing services provide flexibility to help stabilise the electricity system, for example through Frequency Containment Reserve (FCR) or automatic

Frequency Restoration Reserve (aFRR).

Electricity trading creates revenue opportunities through price differences. For balancing services, remuneration for reserving capacity must be distinguished from any settlement of activated balancing energy. In Germany, FCR is remunerated through capacity reservation, while aFRR has separate capacity and energy markets.

The optimisation coordinates bids and trades and creates charging and discharging schedules. It also considers later periods: discharging may be attractive in the short term but make it harder to meet a subsequent delivery commitment.

Example: A battery reserves part of its power capability and the necessary energy margin for balancing services. The remaining flexibility is used for electricity trading. Intraday trades can adjust the planned operation but must not compromise committed reserve capacity.

A local EMS executes coordinated schedules and power setpoints within technical limits. It reports measurements, operating status and available flexibility to the higher-level optimisation system. The optimisation is recalculated regularly using updated prices, forecasts and operating data, while accounting for existing commitments.

Balancing services additionally require the relevant product-specific activation and control functions.

Where Is a Multi-Market Approach Used?

• Standalone battery storage: Operators combine electricity trading and balancing services, allocating the asset according to the available revenue opportunities.
• Storage at generation sites: At photovoltaic or wind power plants, battery operation is coordinated with generation forecasts and shared grid connection capacity.
• Aggregated assets: An aggregator can jointly market the flexibility of several assets. Both the commitments of the asset pool and the limits of each individual site must be considered.

What Limits and Requirements Matter?

A multi-market approach can improve the economic utilisation of battery storage and reduce dependence on individual revenue streams. However, revenues from separate markets cannot simply be added together. Flexibility committed to balancing services is not simultaneously available without restriction for arbitrage: charging and later discharging to exploit price differences. Alongside sufficient power capability, the required stored energy and headroom to absorb additional energy must remain available.

Participation in balancing markets requires product-specific technical evidence and appropriate prequalification. Capacity availability and energy delivery commitments remain binding. The detailed requirements differ by market and product.

Implementation requires reliable measurement data, controllable equipment and suitable communication interfaces. Schedules, real-time setpoints, operating limits and behaviour during communication failures must be clearly coordinated. Any reduction in available flexibility must be reported promptly.

The economic result depends on revenues after electricity purchase costs, conversion losses, battery degradation, trading fees and market access service costs. Other site-specific costs may also apply. Participating in more markets therefore does not guarantee higher profits.

What Role Does EcoPhi Play?

EcoPhi can support the local monitoring, communication and control layer by collecting operating data, exchanging it with higher-level systems and implementing coordinated power setpoints within technical limits.

Available device interfaces, supported market partner connections, schedule formats, control priorities and the required integration effort must be checked and confirmed for each project. Such an EMS integration does not automatically provide trading optimisation, exchange access or balance responsibility. These tasks must be covered by the appropriate market participants.

The Multi-Market Approach in Summary

A multi-market approach coordinates several market opportunities for the same asset. Its value depends on whether additional revenues outweigh costs and constraints. A realistic assessment of available flexibility and reliable coordination between market commitments and asset operation are essential.

Frequently Asked Questions

What Is the Difference Between Multi-Market and Multi-Use?

Multi-market refers to participation in several electricity markets. Multi-use describes the combination of several storage applications, which may include self-consumption optimisation, peak shaving or backup energy reserves. These local applications are not separate electricity markets, but they also use battery power and energy capacity.

Does a Battery Have to Participate in Every Market?

No. The choice of markets depends on technical suitability, access requirements and expected profitability. Combining day-ahead and intraday trading also constitutes a multi-market approach.

Is Direct Access to an Electricity Exchange Required?

Not necessarily. Market participation can be handled through a service provider with the appropriate market access. Responsibilities for trading, balancing arrangements and asset operation must be defined contractually and technically.