Value Stacking - Why Should I Care?

What is Value Stacking

Value stacking is about making your flexible energy assets work harder for you. Instead of limiting an asset to one purpose, value stacking allows you to tap into multiple energy markets, including capacity, energy, and ancillary services. This approach helps you create multiple revenue streams from the same asset.

Who Benefits

Owners of flexible energy assets, such as battery systems or industrial equipment, stand to gain the most. Utilities, fleet operators, and industrial site managers can all benefit by optimizing their assets for various energy services.

Why Does It Matter

It’s simple. Value stacking helps you generate more revenue without significant additional investment. By participating in different markets and services, your assets can:

• Earn revenue in the capacity market by providing energy availability.
• Profit in the day-ahead market through planned energy bids.
• Capitalize in the intraday market by reacting to real-time price changes.
• Offer ancillary services to maintain grid stability, such as frequency regulation.

This strategy not only boosts your revenue but also ensures you’re making the most of your assets.

How Does It Work

Think of your energy asset as a multi-functional resource that can deliver value in several ways. Platforms like Fusebox’s VPP software help you optimize and manage your asset's participation across different energy markets. By automating bidding, tracking performance, and adjusting in real-time, the system ensures you achieve the highest possible returns.

For example, a battery storage system can reduce demand during peak times, earning revenue by helping to balance the grid. It can also support grid stability by providing services like frequency control. Additionally, the system can buy energy when prices are low and sell it when prices are high, creating profit through energy arbitrage.

By using these capabilities together, your asset can tap into multiple revenue streams, significantly increasing its profitability. Fusebox’s VPP software simplifies this process, allowing you to benefit from market opportunities without the complexity of manual management.

The Result

Value stacking can significantly boost the profitability of your flexible assets. By participating in multiple markets, asset owners can see a 30-50% increase in revenue compared to using assets for a single service.

With Fusebox’s VPP platform, you can effortlessly unlock these gains, ensuring every kilowatt of flexibility delivers maximum value.