What Modo Energy benchmarks and indices measure
Modo Energy indices and benchmarks track battery storage revenues and revenue opportunities across different electricity markets. Some benchmarks show what batteries actually earned, while others show potential opportunities like price spreads.
Types of benchmarks
Modo Energy calculates several types of benchmarks. You can see which type each benchmark is by looking at the Type column in the all indices and benchmarks table, or by checking the benchmark's detail page.
Asset benchmarks track actual revenues earned by real battery assets operating in a market
System benchmarks show theoretical revenues based on market prices and system-wide dispatch data
Spread benchmarks track price spreads and arbitrage opportunities
Index vs benchmark
You'll see Modo Energy use both "index" and "benchmark" — here's the difference:
An index measures the performance of a group of assets. All asset-derived benchmarks are also indices because they aggregate real revenue data from multiple batteries operating in a market.
A benchmark is a reference point for comparison. System and spread benchmarks are benchmarks but not indices — they're calculated from market prices rather than actual asset performance.
In practice, you can use both to compare your asset's performance against the market.
Why this matters
Benchmarks help you understand battery economics in a market:
Compare your asset's performance against market averages
Understand where revenue comes from (the breakdown shows different revenue sources)
Track how battery revenues change over time
Benchmark and Index methodologies
Our methodology documentation explains how Modo Energy calculates each benchmark. You can find it at modoenergy.com/benchmarking/methodology.
The methodology documentation answers questions like:
What data sources does Modo Energy use?
How are benchmarks calculated?
When is data published and how often does it update?
Which assets are included in each index?
How do calculations differ between markets?