Academy · 03 / 03 · Markets
Revenue: PPA, merchant and grid services
Map energy, capacity, ancillary services and risk allocation without double counting.
- Level
- Decision
- Reading time
- 16 min
- Reviewed
- 2026-08-24
- Next review
- 2026-11-24
- Jurisdiction
- Market-specific
What you will learn
- 01Distinguish contracted and market-exposed revenues.
- 02Read a PPA as a risk-allocation instrument.
- 03Test whether stacked services can coexist operationally.
Core concepts
01
Every revenue carries an obligation
A PPA may allocate volume, shape, basis, curtailment, availability, change-in-law and credit risk. Merchant exposure links value to location and time. Capacity and ancillary services require eligibility, telemetry, performance and availability under the local market rules.
02
Stacking needs one operating model
Do not add independent revenue estimates when they reserve the same MW, MWh or state-of-charge window at the same time. A co-optimized dispatch model should respect degradation, warranty, interconnection, charging source and performance obligations.
Decision notes
- 01A tariff opportunity is not revenue until eligibility and performance are modeled.
- 02Separate the energy commodity from environmental attributes.
Primary sources
Open the official source and confirm its current edition, jurisdiction and adoption before applying it.