The Clean Energy Council says that any regulatory developments designed to better integrate storage into the National Electricity Market are a welcome move from the Australian Energy Market Commission (AEMC).
“Better integration of storage will support security and reliability, leveraging the capabilities of renewable technology to keep the lights on for consumers, at the lowest possible cost,” said Clean Energy Council Chief Executive, Kane Thornton.
The AEMC appears to have proposed a relatively complex model to achieve this as part of its move towards a two-sided market. The Clean Energy Council says that the focus should be on the practical integration of new technology to maximise benefits for industry and the market as a whole.
It will take some time to unpack the implications of the AEMC’s complex new rule. At first glance, it appears to include some beneficial developments that remain problematic.
On a positive note, it appears the AEMC has retained the ability for battery storage to have 20 bid/offer bands.
“This will provide operators of battery storage with more flexibility, to more effectively leverage the full capability of their assets and provide greater benefits to the system,” said Thornton.
However, the AEMC has maintained the requirement on battery storage to pay network charges.
“This will result in batteries paying twice – both to connect to the system to supply energy as well as to take energy from the system,” said Thornton. “This fails to recognise the significant benefits that batteries can provide, as both load and generation, which can help support the stability and security of the system.”
While the AEMC’s rule seems to be a step forward, several deeper questions will need to be answered to safely and effectively connect batteries to the system. For this reason, the Clean Energy Council is progressing the Connections Reform Initiative, a joint initiative with the Australian Energy Market Operator. The project will determine how to best integrate new technologies like storage to unlock the greatest benefit for the market.
For more information or to arrange an interview, contact:
Clean Energy Council Media Manager
+61 409 470 683