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The Revenue Scenario for Battery Investment Cases
There are mainly kind of two pathways for battery business case. One is to basically participate in the long-term low-carbon capacity auction, which a battery will have its CapEx plus operating costs fully covered by a 20-year government subsidy. The second pathway is to thinking about co-optimizing revenues across wholesale market, financing market and one-year capacity market contracts. This option is preferable from an equity perspective and will potentially capture a lot of the upside.