Australian Chart of the week | VNI West RIT-T: another route-to-market for battery storage?

Over the last week, we have been reading through stakeholder submissions to the Victoria to New South Wales Interconnector West (VNI West) Regulatory Investment Test for Transmission (RIT-T) Project Specification Consultation Report (PSCR). For the most part, the submissions were in support of options 7 and 6 (Figure 1). However, there was one submission that stood out, a non-network option to increase transfer capacity between Victoria and New South Wales from Fluence.

Fluence believe that the VTL can address near-term issues while enabling AEMO and TransGrid to evaluate further options at a later date. However, their proposal also fits in with the Victorian Govt’s System Integrity Protection Scheme (SIPS) program –to allow up to 250MW of additional import over VNI at peak times. During peak periods in Victoria, there tends to be increased output from generation assets in the Snowy region which has the practical effect of restricting southerly flows from NSW (at these times, flows can be restricted to only ~26% of capacity or ~350MW). Locating a battery at the end of this constraint can allow increased energy to be provided to Victoria when it otherwise would not have been possible.The proposal involves installing two 250MW/125MWh batteries that would operate as a Virtual Transmission Line (VTL) – at Wagga Wagga and South Morang substations respectively. 

Related thinking

Energy storage and flexibility

R1 and L1 revving up the BESS revenues

In our ‘The VFF… Very Fast and Financially rewarding market so far’ Chart of the week, the two new contingency markets, the Very Fast raise contingency FCAS market and the Very Fast lower contingency FCAS, were analysed and demonstrated the high participation of big batteries along with VPPs and DERs....

Low carbon generation

“Ooh, a storm is threatening, My very [interconnection] today”: Can states utilise interconnection to share wind resources?

Penetration of renewables continues to dominate the energy news, as we saw renewables as a proportion of total demand reach new heights this week to a new record of ~70% penetration. In light of this continuing march toward a renewable-dominated grid (building on some analysis we did in Chart of...

Energy storage and flexibility

How long is the ‘Golden time of day’ for batteries?

A key part of the business case for grid-scale standalone batteries is the arbitrage opportunity between low daytime wholesale prices (when renewable energy generation from solar is plentiful) and high evening prices (when the sun goes down and household demand ramps up quickly). The share of battery revenue coming from...

Low carbon generation

MLF changes in NSW in the past decade

MLF, short for Marginal Loss Factor, represents the portion of electricity losses that occur along the transmission network between a connection point and the Regional Reference Node (RRN). Within the NEM, the MLF serves as a metric to quantify these losses along the network, playing a pivotal role in determining...

Energy storage and flexibility

Spread your wings and arbitrage away as Q2 sees ‘the spread’ increase

The focus of batteries is constantly adjusting to reflect ‘where the money is at’. Various quarters have trends, and others have events that swing momentum. With FCAS enablement in Q2 this year dropping to some of the lowest values since 2016, shifting the solar curve, or rather arbitrage, became the...

Commercial and market outlook

Polarisation of wholesale spot prices leads to opportunity for arbitrage services

Over the last five financial years, South Australia has seen a significant increase in price volatility, with substantial portions of time both negative and above $250/MWh, leading to increasing opportunities for storage systems to provide arbitrage services. A number of events initiated the reduction in wholesale energy prices between $50/MWh...

Energy storage and flexibility

Proposed changes to PFR and the impact on battery operations

On 3 August, at the request of the Australian Energy Market Operator (AEMO), the Australian Energy Market Commission (AEMC) initiated a rule change request proposing to “clarify the mandatory primary frequency response (PFR) obligations of scheduled bidirectional plant (i.e. batteries with a capacity of 5MW and greater)”. One of the...

Low carbon generation

Putting the National in NEM

The Australia-Asia power line proposed by Sun Cable will connect a 17-20GW capacity solar plant to Darwin with an 800km High Voltage Direct Current (HVDC) transmission line, which then connects to Singapore via a 4,500km HVDC transmission subsea cable (Australia-Asia-powerlink). Expected to be operational by 2027, the $35 billion project has...