We now apply an 85% charge efficiency (assuming a 100% discharge efficiency) to our calculation of merchant revenues. This means we charge for 1/0.85=1.17 hours at the lowest price and discharge for 1 hour at the maximum price in a day.
To account for the current fleet duration of 1.1h, we scale our 1 hour merchant revenue case by 1.08. This is to account for the second hour of spread being 80% of the first hour of spread, and that there is an additional 0.1 hours of capacity. 0.1*80% = 0.08.