The energy storage “megashift” expected to hit the Australian electricity market inside of the next 10 years will not be led by utilities installing large-scale battery systems to help smooth supply on an increasingly distributed and renewable energy network, but by solar households, looking for more value from their rooftop PV systems.
Currently, says energy consultancy AECOM, the most relevant cost-effective applications for energy storage technologies in Australia include facilitating renewables in off-grid, fringe-of-grid markets, and behind-the-meter applications, which can capture a range of energy storage benefits.
But while supply-side energy storage – that used by network operators to balance supply and demand and avoid costly new-build infrastructure – could be considered an “inevitable” part of this trend, the report says it will be the end-user – the 13 per cent (and rising) of Australian households with rooftop solar – who drives the first major wave of uptake.
“One of the largest markets for energy storage systems (in Australia) will be the end-user market, which looks to pair storage systems with rooftop solar PV,” the report says.
“PV can be coupled with storage to maximise usage behind-the-meter and ensure that PV generated during the day can be stored and used during the peak periods.
“This model is currently valuable for consumers because it reduces export of excess solar to the grid. Instead, the locally generated electricity can be used behind-the-meter, offsetting electricity purchased from the grid (which can be three to five times more expensive than standard export tariffs).
“This is the largest and most tangible revenue stream ($/kWh) available to storage projects in the current market as well as in the foreseeable future,” the report says.
Interestingly, the report notes – and the table below illustrates – that what makes the end-user market so attractive is that it is the only one that can obtain economic value created from other market segments.
For example, behind-the-meter energy storage installations can provide value for network management (whether intended or not), by smoothing out the problems of reverse-flow and localised voltage issues that can accompany high penetration of embedded solar PV.
Solar PV also typically reduces total energy throughput without proportionally impacting peak load, adds the report, which leads to lower utilisation of network assets.
As reported on One Step sister site, RenewEconomy, the strategy has been used by Vector, in large part, to gauge the performance of the Tesla Powerwall and how household battery storage fits into its network strategy.
Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
This post was published on August 5, 2015 12:41 am
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PV and storage is a win win for us, the grid and the environment. As the paradigm gains momentum, the cost is reducing leading to further investment by those who cannot for financial reasons, be early adopters. Todays children may accept solar power as essential and commonplace for a house, as an EV or kitchen. How did you ever afford or get into centralised energy generation in the first place?