Methodology - Indices

The Importance of Methodology

Robust by design. Transparent by principle. Benchmarks you can build on.
Our methodologies define the rules that determine how our indices function and perform.

Trusted by:

Our methodology framework ensures transparency, repeatability, and enterprise-grade performance from end to end.

ConstructionCurated asset and market selection — grounded in real-world operations.We define clear, rules-based criteria for asset inclusion and market coverage, aligned with local electricity market structures and price signals. This ensures each index reflects the most relevant performance and commercial opportunities for battery energy storage across electricity markets worldwide.

CalculationAlgorithmic, repeatable, and fully traceable.All indices are calculated through automated pipelines that apply consistent logic to asset and market data. These pipelines process datasets (e.g. dispatch, pricing, capacity) to estimate revenues or spreads using predefined methodologies. Validation checks are integrated throughout to ensure accuracy and consistency across all markets.

ReviewRoutinely audited, transparently maintained.Our indices undergo regular internal review to maintain integrity, methodology alignment, and cross-market comparability. Updates to logic, input data, or structural definitions are versioned and documented, with stakeholder transparency at the core of our governance process.

DeliveryEnterprise-grade access across platforms.Index outputs are available through our API and the Terminal. Whether you’re tracking asset performance, running internal benchmarks, or conducting investment analysis, our data is designed to integrate seamlessly into enterprise workflows, valuation models, and internal dashboards.

Asset

Asset-derived indices reflect the performance of grid-scale battery assets based on observed market activity.

Built using Modo Energy’s industry-leading performance data, each index is constructed from asset-level revenues, following a consistent methodology tailored to the rules and structure of each specific electricity market. By standardizing how performance is calculated across eligible assets within a system, these indices enable robust benchmarking and provide a comparable view of battery storage performance.

Asset indices are widely used by investors, asset owners, analysts, and developers to benchmark operational assets, assess market trends, and evaluate revenue opportunities across regions.

Great Britain

ERCOT

USA, Texas

AUS NEM

Austraila

Spread (TB)

Spread-based TB (Top-Bottom) indices reflect the theoretical energy arbitrage opportunity available to battery energy storage systems from capturing the daily price spread in wholesale electricity markets.

Each index measures the difference between the highest and lowest hourly prices in a given day — representing the core arbitrage opportunity available to battery assets. These spreads are calculated consistently across days, locations, and markets, offering a clear, strategy-agnostic view of underlying price volatility.

TB indices are used by investors, analysts, developers, and traders to benchmark market conditions, assess revenue potential, and identify trading opportunities. They serve as foundational inputs in revenue forecasting and are used in financial products and derivatives linked to battery storage performance — providing a standardized way to express and trade exposure to market volatility.

Europe

System

System-derived indices reflect the performance of the battery energy storage fleet within an electricity market, based on system-wide operational data.

These indices analyze fleet-wide storage operations to model revenues from participation in wholesale markets. Built on real market data and consistent assumptions, they provide a market-level view of storage opportunities.

System indices are especially valuable in markets where individual asset revenues are not publicly disclosed. By modeling revenue potential across the system, they help investors, operators, and policymakers understand how storage is being monetized, bringing transparency to areas of the market where revenue performance is not readily visible.

CAISO

USA, California

“Modo Energy enables us to capitalise on new revenue lines - We were able to immediately participate in the Balancing Reserve, resulting in a 20% increase in our average £/MWh since its launch.”

David MenendezManaging Director UK & BESS at FRV

Modo Energy terminal

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