Opportunity valuation in the U.S.
This article is specific to the U.S. valuation tool. Please refer to this article for the UK tool.
The market valuation widget is visible on the Piclo Marketplace homepage. This tool estimates the annual value of opportunities planned by our Utilities partners. The figure represents a rough “market size” available to DER Sellers based on the inputs provided to the valuation widget. It describes the total annual value of all the opportunities in which a DER Seller might participate, depending on the volume, duration, and price of the opportunity. Piclo relies on assumptions derived from historical program analysis and guidance from Utilities on future program plans.
Note: This figure does not represent the revenue a DER Seller will earn. Sellers will only receive a portion of this overall market value, which varies by organization.
Methodology
Piclo estimates the value of an opportunity using the following data inputs:
Capacity input by user: The capacity provided by the user.
Expected price: The marginal price (price per MWh) for the opportunity, derived from:
•Guide prices for the programs.
•An assumed average price for the opportunity type.
•Historical program performance.
Available hours: For opportunities that compensate for availability, derived from assumptions regarding the expected available hours for each opportunity.
Utilized hours: The expected hours of utilization for each competition, based on assumptions about the expected utilized hours for each opportunity.
Piclo calculates the value for each opportunity in each market based on the opportunity’s structure. These values are then aggregated into a single figure.
How to Use This Figure
This number should be considered a rough assessment of the market size available to DER Sellers. In some cases, opportunities may not be “stackable” across markets. For certain programs, estimates are based on historical data and guidance from our partners. The calculations will update as we incorporate program information from activities on our platform.
Remember, this figure does not estimate the total revenue that DER Sellers will earn on Piclo. Instead, DER Sellers should use it as a rough gauge of the available market value. The revenue each provider earns will vary based on factors such as asset technology type, business model, and market competitiveness.