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To protect asset health and ensure warranty compliance, terralayr applies usage limits to virtual assets based on Rated Energy Capacity and real-time Availability. Your contracted lifetime and annual cycles remain fixed, but your daily discharge limits are defined by you Available Energy Discharges (AEDs) and can adjust dynamically based on your asset’s availability.

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How Cycles and AEDs Are Calculated

When an asset’s rated capacity changes (due to degradation or capacity ramp-up), we use a time-weighted capacity approach to calculate cycles. When availability of the asset is impacted, we apply an additional availability weighting to calculate AEDs to prevent overcycling of the physical fleet.

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The Mechanism

Calculations occur at 15-minute granularity using discharged energy time series, ensuring that cycle calculations are always proportional to the asset’s rated capacity in each settlement period.
  • Cycles: Total cycles for each quarter hour = energy discharged / rated energy capacity, Edsch/EratedE_{dsch}/E_{rated}
  • AEDs: For daily limits, we weight cycles by the asset’s fractional availability α\alpha (where 1 = 100% available, 0 = 100% unavailable)
Usage limits are calculated as follows: Daily AED Limit ∑qhEqh,dschEqh,rated×1αqh≤Daily AED Limit\sum_{qh}\frac{E_{qh,dsch}}{E_{qh,rated}}\times\frac{1}{\alpha_{qh}}\leq \textrm{Daily\space AED\space Limit} Annual Cycle Limit ∑qhEqh,dschEqh,rated≤Annual Cycle Limit\sum_{qh}\frac{E_{qh,dsch}}{E_{qh,rated}}\leq \textrm{Annual\space Cycle\space Limit}

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Example Scenarios

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Capacity Changes

If your asset’s capacity changes mid-year, your available energy throughput adjusts, but prior cycle counts remain unchanged. Example: Image 71
  • Asset Energy Capacity Increases from 10 → 20 MWh
  • Week Before Change: 10 MWh energy capacity, 100 MWh discharged = 10 cycles
  • Week After Change: 20 MWh energy capacity, 100 MWh discharged = 5 cycles
  • Total cycles: 15

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Daily AED Limits during Unavailability

Your annual cycle limit is unaffected by downtime, but your daily AEDs are reduced proportionally to availability. Example: Image 72
  • Asset with 3 AEDs per day, 10 MWh capacity
  • 08:00-12:00: Full discharge (10 MWh) = 1 AED and 1 cycle
  • 12:00-16:00: 50% unavailability reduces available capacity to 5 MWh
  • 12:00-16:00: Discharge 10 MWh = 2 full discharges of available capacity = 2 AEDs but only 1 cycle
During unavailability, your daily cycle limit decreases proportionally to protect physical assets within warranty limits. However, your annual cycle budget remains unchanged, allowing you to recover those cycles when full availability returns.
Last modified on May 6, 2026