Why portfolio-level management is essential

In a market where day-ahead prices, intraday opportunities and imbalance costs are volatile, it is crucial to optimise not just on an asset-by-asset basis, but across the entire portfolio. For example:

• A day-ahead nomination strategy without intraday adjustments can lead to higher upstream imbalance costs than the downstream savings gained from performing day-ahead optimisation on an asset-by-asset basis.
• The marginal value of flexibility varies depending on location, type of installation and grid costs.
• Without a combination of hedging and imbalance management, a trading strategy quickly becomes risky as scale increases.

Particularly for behind-the-meter assets with local generation (such as PV), there are significant benefits to be had, provided there is a well-thought-out, portfolio-based management approach.

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