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Public Methodology

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Public Methodology

Calculation chain, conventions, capture metrics, storage physics, information sets and inclusion rules.

Version 1.2Effective 24 July 2026

Calculation chain

approved inputs → validation → physical profile or dispatch → eligible cashflows → normalisation → publication

Conventions

  • Market: MIBEL.
  • Bidding zone: Spain (ES).
  • Currency: EUR.
  • Prices: EUR/MWh.
  • Resolution: finest reliable interval supported by the source and applicable rules.
  • Calculations use full precision; rounding occurs only for display.

Capture metrics

CapturePrice = Σ(Pₜ·Qₜ) / Σ Qₜ

CaptureRate = CapturePrice / BaseloadPrice

GrossRevenue = Σ Pₜ·Qₜ

Storage

SOCₜ₊₁ = SOCₜ + ηc·Chargeₜ·Δt − Dischargeₜ·Δt / ηd

The reference BESS uses 90% round-trip efficiency. Where efficiencies are symmetric:

ηc = ηd = √0.90

No double counting

All markets share one physical state. The same MW, MWh, state of charge or grid capacity cannot be sold twice.

Information sets

CodeMeaning
OBSObserved result.
PFPerfect foresight; an analytical upper bound.
DTIDecision-time information only.
FWDForward scenario, not a historical benchmark.
CUSTOMProject-specific analytics, not a public benchmark.

Version register

LayerApplicable version/statusMeaning
AE ES BESS family methodologyv1.0Published calculation and disclosure boundary
IDA source semanticsv1.8.4Session horizons, unavailable-session classes and coverage contract
Benchmark calculationCurrentApplies to published observations carrying this version
State-coupled boundary methodCurrentPrimary continuous-SoC methodology

Auction Energy calculation sequence

  1. Read the exact Madrid delivery-day DA horizon at native resolution.
  2. Optimise the DA position using the declared information set and reference asset.
  3. At each IDA gate, adjust only with the information available for that session.
  4. Preserve committed positions, SoC, power and throughput across every gate.
  5. Attribute the result as DA scheduled margin plus incremental IDA uplift minus expressly included transaction costs.
DA scheduled margin
+ IDA1 incremental uplift
+ IDA2 incremental uplift
+ IDA3 incremental uplift
− included transaction/rebalancing costs
= gross simulated Auction Energy revenue

The IDA components are sequential incremental uplifts. They are not standalone intraday revenues and must not be added to an independently optimised DA index.

Full family coverage

LayerIncluded familiesCalculation basis
EnergyAuction Energy and Continuous IntradayMarket-sequenced dispatch under shared battery constraints
BalancingaFRR Capacity, aFRR Energy, mFRR Capacity and mFRR EnergyAvailability, awarded capacity and activated energy as applicable
CapacityCapacity RevenueApplicable capacity remuneration and asset qualification
StackedStacked RevenueCo-optimised participation across eligible products without double counting
ObservedRealised PerformanceObserved fleet or asset results using the declared coverage basis
ProjectProject BenchmarkProject configuration and net-revenue adjustments applied to the relevant market benchmark

Family calculation principles

  • Continuous Intraday: chronological market participation is evaluated within the applicable trading windows and shared battery constraints.
  • aFRR and mFRR Capacity: awarded or available capacity is valued using the applicable capacity remuneration and qualification basis.
  • aFRR and mFRR Energy: activated energy, activation price and resulting SoC movements are reflected in the corresponding energy value.
  • Capacity Revenue: qualified capacity is valued for the applicable delivery period without being added twice to a stacked result.
  • Stacked Revenue: markets are co-optimised under a single set of physical and availability constraints.
  • Realised Performance: observed results are normalised to the declared asset, fleet and coverage basis.
  • Project Benchmark: the relevant Market Benchmark is adjusted through a transparent project-specific revenue and cost waterfall.

Revenue and cost boundaries

Market Benchmark: gross modelled market revenue, net of charging-energy purchases and AC-to-AC efficiency losses.

Stacked Revenue: co-optimised multi-market revenue with shared power, energy, SoC and throughput constraints and no addition of independently optimised standalone values.

Project Benchmark: applies availability, degradation, O&M, taxes, network charges, route-to-market fees and project configuration through a visible, non-duplicative waterfall.

Realised Performance: observed revenue or performance, clearly labelled by asset or fleet coverage and measurement period.

SoC boundary methodology

Primary: state-coupled / continuous SoC

SoC is carried across delivery days, months, calculation chunks and DST boundaries. The full calculation window is cyclic, with final SoC equal to initial SoC, unless a separately disclosed terminal-energy value is approved.

Control: daily-neutral SoC

Every Madrid delivery day starts and ends at the same declared SoC. This is a conservative control series, not an automatic replacement when the state-coupled solve fails.

The two modes use identical prices, session availability, asset assumptions, market sequence, costs and EFC constraints. Their only permitted difference is the boundary condition. The difference is labelled interday optionality value, not operational uplift.

Unavailable sessions

  • No zero-price substitution.
  • No DA carry-forward or replacement from another IDA session.
  • No interpolation or forward-fill.
  • The portfolio position and SoC entering the next available gate are preserved.
  • Raw coverage keeps the full contractual denominator.

Time, resolution and DST

UTC timestamps are the canonical computational keys. Delivery-day reporting uses Europe/Madrid civil time. Expected horizons are derived from the exact half-open local interval [00:00, next 00:00): 23/24/25 hourly periods or 92/96/100 quarter-hours. IDA3 retains its fixed last-12-hour horizon of 48 quarter-hours.

Quality controls

Launch4 S.L. applies source-coverage, time-alignment, physical-feasibility, reconciliation, versioning and approval controls before an observation is released. Failed controls do not produce a published value.

Inclusion

A revenue component is included only when eligibility, observable inputs, market depth, settlement treatment and no-double-counting controls are approved.

Protected IP

Public disclosure includes economic meaning, material parameters, sources, equations, constraints, judgement and limitations. Production source code, credentials, schemas, solver tuning, security controls and proprietary forecast calibration remain confidential.