Market Valuation in Piclo Max

Piclo Max's market valuation widget is visible on the homepage of Piclo Max. 

The tool estimates the value of opportunities live in the platform which your assets are currently eligible for. 

This figure is a rough ‘market size’ available to Flexibility Service Providers (FSPs) based on their current portfolio on Piclo Max.

The market valuation describes the total value of all the opportunities that a Flexibility Service Provider could participate in, based on the volume, duration, and price of the opportunity. Piclo uses assumptions based on a dataset of over 5,000 UK opportunities where true values are not known (such as pricing), detailed below.

This does not indicate the revenue that FSPs could earn. FSPs will only earn a proportion of this overall market value, and this will vary for each user.

Methodology

Piclo estimates the value of an opportunity using the following data inputs: 

• Eligible Capacity
  • The lesser of: 
    • Your total eligible capacity
    • The minimum required capacity for each service window
• Expected price
  • The marginal price (£/mWh) for the opportunity. This is derived from: 
    • The guide price for the opportunity
    • Or, an assumed average price for the opportunity type
• Available hours
  • For opportunities that compensate availability. This is derived from: 
    • The expected available hours for each opportunity. 
    • Or, if the opportunity type has greater available hours than will be compensated (for example, in some DNO Flex product types), this is a proportion of the total available hours in each service window. This proportion varies by each market type depending on the market requirements. 
• Utilised hours
  • The expected hours of utilisation for each competition. This is derived from: 
    • Dispatch volumes in Piclo Flex for each market.
    • Or, assumptions based on published utilisation volumes for each market type. 

Piclo calculates the value for each opportunity in each market, depending on the opportunity’s structure. These are aggregated together into a single figure in Piclo. 

When no value is displayed

If no value is displayed, Piclo is unable to find any opportunities which your assets are eligible for. This could be because: 

• You do not have any assets in the platform. Upload assets to see your potential opportunities. 
• Your assets are not eligible for any opportunities. Review your asset data to ensure it is correct, and check back at a later date. Add your full asset portfolio to be notified of new opportunities in the market.
• There are no opportunities live in the platform. Add your full asset portfolio to be notified of new opportunities in the market.

How to use this figure

This number should be taken as a rough assessment of the size of the market available to FSPs

This number does not estimate the total revenue that FSPs could earn on Piclo. FSPs should use this figure as a rough estimate of the value of what is available to them. Some markets may be a better fit for your assets than others; therefore, the amount that each provider will earn will vary based on your assets’ technology type, your business model, and the competitiveness of each market. 

Please reach out to support@piclo.energy for further information on this estimate.