Course 13 of 20 · Battery and Flexibility Desk Academy

Tolling, Floors & Revenue Guarantees

Stage C, Revenue realisation and commercial agreements. Level 7 of 10.

Structuring and pricing tolls, floors and guaranteed-revenue arrangements, and identifying which risk each one transfers and which it leaves behind.

125 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 10, Course 11, Course 12

Enrol or enquire See the 125 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 125 chapters

Open any module for its full chapter list, in teaching order.

M0 Three Ways to Sell Certainty From a Flexibility Asset Ch 1-10
  1. The Question a Contracted Arrangement Answers
  2. Three Arrangements and Three Different Transfers
  3. The Four Parties Around a Contracted Battery
  4. What the Cost and Margin Build Hands This Work
  5. What the Settlement Record Hands This Work
  6. What the Optimiser Mandate Hands This Work
  7. Why an Asset Owner Asks for Certainty
  8. Why a Trading House Pays to Control a Battery
  9. One Asset, One Counterparty, One Year
  10. What Selling Certainty Leaves Unsettled
M1 Direction: Granted By, Held By, Left Behind Ch 11-20
  1. Transfer, Grant and Residue Are Three Separate Facts
  2. Recording Who Granted What Over One Finite Capacity
  3. The Residue Register: What the Structure Left Behind
  4. A Floor Is Granted by the Counterparty and Held by the Owner
  5. A Toll Moves Merchant Exposure and Leaves Availability Behind
  6. A Guarantee Moves Price Exposure and Rarely Moves Volume
  7. Pushing the Revenue Stack to Both Extremes
  8. The Inversion Test Run Against One Drafted Arrangement
  9. Wording That Quietly Reassigns a Right
  10. The Sheet the Control Room Reads at Midnight
M2 The Storage Toll: Capability Sold, Merchant Exposure Transferred Ch 21-32
  1. What a Storage Toll Sells, and What It Does Not
  2. Why Tolling a Battery Is Not Tolling a Generating Unit
  3. The Availability Fee Paid for Reserved Capability
  4. Quoting the Fee per Megawatt or per Megawatt-Hour
  5. The Duration the Fee Is Quoted Against
  6. Dispatch Discretion Handed to the Toller
  7. The Grounds a Battery Owner Can Actually Rely On
  8. Charging Energy and Who Funds the Round Trip
  9. Network and Balancing Charges Inside or Outside the Fee
  10. A Fee That Rises While the Asset Shrinks
  11. Two Walk-Away Numbers, One Bargaining Range
  12. A Toll Term Sheet Reduced to Five Allocations
M3 Cycles and Degradation: The Question That Decides Viability Ch 33-44
  1. The Cycle Ration at the Centre of Every Storage Toll
  2. Mapping the Toll's Cycle Count Onto the Warranty's
  3. Energy Throughput Instead of Counting Events
  4. The Allowance Window and What Happens at Its Edge
  5. Who Bears a Cycle the Toller Consumed
  6. Who Bears the Capacity the Toller Wore Out
  7. A Wear Charge Paid by the Party Holding Dispatch
  8. Exceeding the Ration: Surcharge, Damages or Refusal
  9. Allowance Unspent and Whether It Carries Forward
  10. Depth and Temperature Conditions as Bounds on an Instruction
  11. The Capacity Test That Decides Who Pays
  12. The Toll That Failed Because Nobody Owned the Cycles
M4 Availability: The Exposure a Toll Leaves With the Owner Ch 45-55
  1. Why Availability Is the Residue of Every Storage Toll
  2. Defining Availability for an Asset That Must Also Charge
  3. State of Charge as a Precondition of Being Available
  4. Declared Availability Against Demonstrated Availability
  5. Partial Availability and the Derating Convention
  6. The Measurement Period That Decides Whether a Promise Bites
  7. Liquidated Damages for an Availability Shortfall
  8. The Exclusions That Protect the Owner
  9. Planned Maintenance Windows Agreed in Advance
  10. A Bonus Above the Promised Availability Level
  11. What Promising Availability Actually Costs an Owner
M5 The Revenue Floor: Protection for the Owner, Granted by the Counterparty Ch 56-67
  1. What a Revenue Floor Obliges the Grantor to Pay
  2. Setting the Minimum at the Debt Service Line
  3. A Minimum Covering Only the Cost of Staying Available
  4. A Minimum on Gross Earnings Against One on Net Margin
  5. The Period Over Which a Minimum Is Tested
  6. A Minimum Expressed per Megawatt per Year
  7. A Minimum Applied to Part of the Asset Only
  8. The Share of Upside the Grantor Takes in Return
  9. A Minimum That Escalates Across the Term
  10. A Floor Granted by an Optimiser Against One Granted by a Utility
  11. The Floor a Counterparty Will Refuse, and Its Reasoning
  12. What a Revenue Floor Does Not Reach
M6 Revenue Guarantees and What They Do Not Guarantee Ch 68-79
  1. A Guaranteed-Revenue Arrangement Defined Precisely
  2. Price Exposure Transferred, Volume Exposure Retained
  3. Capacity Decline Left With the Owner Inside a Guarantee
  4. Availability as a Condition of Being Paid
  5. The Benchmark a Guarantee Is Measured Against
  6. A Guarantee Referenced to a Figure the Owner Cannot Observe
  7. The Collar: A Minimum and a Ceiling Over One Earnings Line
  8. A Guarantee Exhausted Before the Term Ends
  9. A Guarantee Conditioned on Market Access and Qualification
  10. Who Stands Behind the Guarantor
  11. The Guarantee That Paid Nothing in the Year It Was Needed
  12. Reading a Guarantee for the Exposure It Left Behind
M7 Pricing the Grant Ch 80-91
  1. Valuing a Promise With No Traded Comparator
  2. Building the Earnings Scenarios the Valuation Reads
  3. The Payoff in Each Scenario, Averaged Afterwards
  4. The Error of Bounding an Averaged Earnings Figure
  5. The Owner's Own Path Set and the Number It Produces
  6. Why the Grantor Prices the Same Promise Lower
  7. Pricing the Upside Share the Owner Surrendered
  8. Netting the Two Payoff Sets Inside a Collar
  9. Pricing the Overrun Charge as a Right Held by the Owner
  10. Pricing the Availability Promise the Owner Gave
  11. Who Chooses the Likelihood of a Thin Year
  12. What the Averaged Payoff Cannot Settle
M8 Negotiating the Structure Ch 92-102
  1. Converting a Priced Grant Into a Fee Adjustment
  2. Extra Years Cost the Owner Warranty Life
  3. The Concession Ladder on a Contracted Battery
  4. Two Offers With the Same Headline Number
  5. Putting a Toll and a Floor on One Comparison Basis
  6. How Long a Contracted Arrangement Should Run
  7. First Call, Exclusivity and Priority Over Capacity
  8. What a Trading Counterparty Will Concede and What It Will Not
  9. The Concession Made by Operational Practice
  10. Arrangements This Desk Should Decline at Any Fee
  11. Heads of Terms for a Contracted Flexibility Deal
M9 Testing the Structure Before Signature Ch 103-113
  1. Computing the Whole Arrangement at Three Earnings Levels
  2. A Grid of Thin Years Against Heavy Dispatch
  3. Where the Minimum Bites in the Settlement Waterfall
  4. Drafting Errors That Reverse a Transfer
  5. When Available Capacity Means Two Different Things
  6. A Bound Tested Over the Wrong Interval
  7. Can This Arrangement Produce an Outcome Neither Party Intended
  8. The Residue Register Completed Before Signature
  9. One Arrangement, Two Computations, One Reconciliation
  10. A Direction Audit by Someone Who Did Not Negotiate It
  11. The Tests an Owner Applies Before Signing
M10 Two Arrangements Worked, and the Limits Ch 114-125
  1. The Brief: A Two-Hour Battery and Two Competing Proposals
  2. Case One, Part One: Placing Dispatch and Setting the Fee
  3. Case One, Part Two: Rationing Cycles and Allocating Wear
  4. Case One, Part Three: The Availability Undertaking
  5. Case One, Part Four: Pricing What the Owner Granted Away
  6. Case Two, Part One: Designing the Minimum and the Share
  7. Case Two, Part Two: Pricing Both Grants and Netting Them
  8. The Two Arrangements Compared on What They Left Behind
  9. The Same Asset With No Contracted Arrangement at All
  10. The Proposal That Should Have Been Declined
  11. The Questions This Market Has Not Settled
  12. What These Arrangements Cannot Do

The brochure gives each of these 125 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 13 of twenty

It stands alone, and it is also the entry point to the Battery and Flexibility Desk Academy pathway.

Enrol or enquire See the whole pathway