Announcements of new grid-connected battery developments seem to occur on an almost daily basis. Many of these developers are looking to enter the Firm Frequency Response (FFR) market. This is primarily due to the potential value as well as it suiting the characteristics of batteries.
In this week’s Chart of the week, we observe the values for this service dropping over the last two years. With more entrants challenging the larger pumped storage incumbent providers.
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Energy storage and flexibility
On 21 February, the T-4 Capacity Market auction for Delivery Year 2026-27 cleared at a record high price of £63.00/kW/year, procuring 43,000.955MW of capacity. In this week’s 'Chart of the week', we explore the key takeaways from the auction.
Energy storage and flexibility
A standalone battery earns its revenue not only from the arbitrage opportunity between day and night prices but also from participation in FCAS markets. This remains true when the battery is paired with a solar farm but can be complicated by constraints or trade-offs between FCAS participation and solar export....
Commercial and market outlook
There has been talk for years about the potential introduction into the National Electricity Market of a “capacity market”, with significant pushback from the industry over the potential for a capacity market to prolong the life of coal and gas and slow decarbonisation of the grid. On Friday last week...
Energy storage and flexibility
The choice of Chart of the week was an easy one following Saturday’s storms that ‘reined’ down on South Australia. The state became isolated from the rest of the National Electricity Market after one of ElectraNet’s pylons, supporting the interconnector between SA and Victoria, was knocked down[1]. The consequence...
Energy storage and flexibility
It has been an interesting year for Australian energy markets, facing unprecedentedly high energy prices, coal outages, and market suspension. In today’s Chart of the week, we will investigate the impact a BESS would have made during FY 2022. Using Cornwall Insight Australia’s battery simulation model, we simulated a stand-alone...
Energy storage and flexibility
The events leading up to the recent market suspension in June have highlighted the role that peaking gas-fired generation plays in satisfying demand and setting prices across the NEM in the morning and evening peak periods. The team recently explored some of the drivers and effects of these events in...
Energy storage and flexibility
The rise of renewables has seen the need for additional firming capacity in order to smooth renewable output and replace coal capacity in the evening peak. The ESB and federal Ministers are currently in discussions regarding the development (or not) of a capacity market for the NEM. Interestingly from the...
Commercial and market outlook
Last month, the Australian Competition and Consumer Commission (ACCC) announced that there will be a gas shortfall in the east coast market in 2023, not a surprise considering the international gas crisis and high gas prices in Australia. Such events have increased attention towards expanding gas supply or reducing the...
