Great post from advfn8 May 2017 19:30
This was an answer to a question about when revenue streams kick in;
"There is no specific contractual obligation for TRIAD. At the end of Winter, national grid decide what the triad periods were, from which charges are applied to ALL market participants, per their actual demand during those periods. There is no opt in or opt out. Triad is focused on transmission system demand, and embedded generators are seen as negative demand because they reduce the need for supply from the transmission system. Thus they receive a negative charge - or a revenue.
Something like STOR is very different. Under a STOR contract, your asset has to be available and NOT running during specific time windows, on specific days, in specific date ranges. So if you have a STOR contract, this effectively negates any other options during those specific windows.
So let's say you had a STOR contract for the previous winter, which includes times over the evening peak, on weekdays. You now have to be available and not running during those windows, so that NG can call on you to operate at short notice (hence the name Short Term Operating Reserve). It may be that during the periods which end up being TRIADs, you were sat there doing nothing because NG didn't need you. It may be that NG called on you to generate, and you would therefore also benefit from Triad revenue. So it is possible that these revenues can be combined, but you have little control over what Triad revenue you would receive. Thus a conscious decision has to be made - are we going to chase Triad, or are we going to secure a STOR contract. A STOR contract provides both an availability payment (to sit there and be available) and a utilisation payment (for those times at which you are called).
PPAs are different again. These are bilateral agreements with other market participants (or can be through daily auction, but the effect is the same), to supply power at specific times. This cannot be combined with STOR (hopefully for obvious reasons) but absolutely can be combined with Triad. If you think this evening will see a Triad, sell your output via a PPA and generate the power. If at the end of winter it was a Triad, great. If it wasn't a Triad, then hopefully you made enough money from the PPA to cover the cost of running.
It's interesting to note that you there is reference to the costs of chasing triad (up to 50% of running cost). If this is true, then PPG are selling their output via PPA's, at a loss, in order to secure the Triad revenue. This will be impacted by the cost of fuel, efficiency of the engines, and the price at which they were able to sell their output via PPA. The average price they can sell at will be related to how many times they choose to run. If they operated 10 times to capture the 3 Triads, they could probably do so at profit every time. If they operate 70 times to capture the 3 Triads, then it is likely that many of those would be loss-making runs." A very interesting and u
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