*4.3. Energy Arbitrage*

Energy arbitration is where energy is kept throughout low production expense/tariff time for transmission at high production cost/tariff time. Accordingly, the network's incompetence does not surpass the cost distinction, so the business case could be positive. The general formulae for value realization over the life of the asset are shown in Equation (1).

$$Value = Energy\,Symbol \times \text{Peak Rate} - Energy\, Consumed \times Off\, - \, Peak\, rate \tag{1}$$

where,

$$Energy\ Supplied = Energy\ Consumed \times Efficiency\ of\ BESS$$
