Electricity markets are changing faster than most asset management frameworks can keep up. Grid congestion, curtailment, hybrid plants and volatile pricing are reshaping how renewable assets create value. Today, more energy production doesn't not always mean more revenue.
Yet many asset managers still rely on traditional performance metrics such as Performance Ratio (PR). These approaches were developed for operating conditions that are increasingly disconnected from today’s market and grid realities.
The hybrid reality is redefining performance
Not long ago, you were either managing PV or wind power. Today, hybridisation is becoming the industry norm. Across Europe and the US, developers are combining PV, wind and battery storage under shared grid connections to:
- Mitigate curtailment risk
- Optimise revenue streams
- Increase infrastructure utilisation
- Respond to volatile market prices
But hybrid assets introduce new operational complexity. Modern assets now require coordination across multiple technologies, market signals, control systems, and stakeholders. Technical and commercial boundaries are blurring, and traditional performance monitoring is no longer sufficient.
Why classical KPIs no longer work
Historically, asset performance management focused on maximising energy yield. Higher production meant higher revenue. Today, curtailment events, negative price periods and merchant revenue exposure are also influencing production and revenue outcome. Classical KPIs can then become misleading:
- Curtailment appears as underperformance
- Hidden technical issues remain undetected
- Reporting becomes manual and inconsistent
- Contract discussions grow longer and more complex
The industry is moving from yield optimisation toward revenue optimisation, and this requires a new reference model, which Anouk Hut presents in her article.
[Read our dedicated blog on "From yield to revenue: why traditional KPIs no longer work in today’s energy markets"]
A new reference approach: the physics-based digital twin
One of the key themes explored in the article is the use of physics-based digital twin as refrence model for performance assessment. A digital twin csimulates how a plant is expected to behave, from design through operations, using actual weather, grid and market data. This enables a more structured comparison between expected and actual performance.
It allows operators to better understand questions, such as:
- What should the plant have produced under the same conditions?
- How much loss comes from curtailment versus technical issues?
- What is the true impact of a specific energy loss type on revenue?
- Which actions deliver the highest financial recovery?
This shift enables transparent and consistent performance assessment across technical teams, investors, grid operators and commercial stakeholders.
From performance monitoring to revenue optimisation
Modern PV asset performance management is no longer only about monitoring assets. It’s also about aligning technical performance, market exposure and business planning.
According to Anouk Hut, the next generation of asset management relies on:
- Continuous modelling from design to operations
- Stakeholder-specific reporting
- Curtailment-aware KPIs
- Integrated technical and commercial analytics
In short: performance management must evolve alongside electricity markets.
Read the full PV Tech article
This blog only provides a high-level introduction to the topic. In the full article, Anouk shares:
- A four-step methodology to implement a physics-based performance model
- A real hybrid portfolio use case under grid congestion
- New KPI approaches designed for volatile electricity markets
- The role of digital twin for contractual alignement and financial forecasting
