Optimization software offers a significant opportunity for storage asset owners in the California Independent System Operator (CAISO) market to boost merchant revenue while fulfilling their Resource Adequacy (RA) obligations. Stem’s digital twin bid simulator analyzed the impact of various RA contract configurations on the revenue potential of a simulated CAISO storage asset in 2023.

 

This study examines how different RA contract variations influence bidding behavior and revenue, demonstrating how toll off-takers and asset owners can maximize value through CAISO merchant optimization while fulfilling RA obligations.