Business model innovation - disruption20 Sep 2021 18:32
Expect much more of news like this as we approach COP26:
It won’t take many countries to legislate and adopt policies that will make great strides in the switch to greener energy, nothing new that lth’s aren’t already aware of is that battery storage is expected grow as fast as if not faster than EV adoption.
Australia’s electricity market rule change that will be ‘massive’ for batteries is imminent
Business model innovation just with a policy change.
The NEM has five minute electricity dispatch markets in Australia already, but the price associated from one window to the next is averaged out over 30 minutes. So if a battery asset’s stored energy is dispatched into the market over a five-minute period when the price is high, but the price then drops, the battery asset operator effectively gets a lower payment than the power was worth at the time.
“So it doesn’t incentivise fast technologies like [battery storage] that tries to come in, in those short periods of time, when they could be needed, because they would not get that high price. It could be much, much lower. 5MS will move it to not be this average over the 30 minutes, it will mean that if you bid during that five minute, you will get dispatched at that price, you’ll be settled at the price in that five minute period,” Patterson said.
“So it’s really providing another incentive for those fast technologies to come in as needed for short periods of time. That can be massive.”
Battery storage companies have had time to prepare and look set to implement their own changes to capitalise on the new opportunity. In May this year, Matt Penfold, a VP of business development at energy storage technology provider and system integrator Fluence said in an interview that his company had a “whole software change roadmap in place” and was “counting down the days” until 5MS came in.
Most fossil fuel generators, being much slower to respond to grid and market signals than battery storage which can respond in milliseconds, will find it difficult to compete, Penfold said.
https://www.energy-storage.news/australias-electricity-market-rule-change-that-will-be-massive-for-batteries-is-imminent/
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