Energy storage has been at the forefront of conversations resulting from AEMO’s newly released 2020 Integrated System Plan (ISP). The ISP states that 6-19GW of dispatchable resources are needed to support more than 26GW of new renewables. So where will battery energy storage fit in and where will they make their money?
We see from most of the utility scale battery storage projects in the NEM that more than 75%-80% of their market revenues are generated from Frequency Control Ancillary Services (FCAS) markets. Of these the largest contributor in FCAS revenues has been from regulation raise services usually accounting from 25%-50% of all battery storage revenues.