Energy Storage

Batteries in South Australia have been paid to charge throughout September and October 2021 due to a record number of negative price intervals. Wholesale electricity prices were negative almost 40% of the time.

The Australian Energy Market Commission has opted not to move “the goal posts on network charges” for energy storage projects, including large-scale batteries and pumped hydro, rejecting a request from the Australian Electricity Market Operator to exempt operators from being charged when drawing power.

Scientists in the United States pieced together data from hundreds of different sources, looking to establish the key factors that have led to consistently falling prices for lithium-ion technology since their commercialisation thirty years ago. They find that public-funded research, primarily in chemistry and materials science, has made the largest contribution to cost reduction. And they offer suggestions on policy and investment to ensure that the research can continue to make these important contributions to reduction in battery costs.

BloombergNEF says falling battery costs and “surging” renewables penetration make energy storage a “compelling flexible resource in many power systems.” Australia is among the predicted top markets.

Less than a year ago and energy market analysts Cornwall Insight Australia projected a battery energy storage pipeline of 7 GW. This week the firm has updated its outlook and puts Australia’s current pipeline of proposed projects at over 26 GW. What is more, the technical lifetime of these assets is increasing too.

Israel-based Augwind has built its first 250 kW/1 MWh compressed air storage system for the collective community of Yahel, in the southern, desert part of the country. The commercial scale facility will be connected to a PV system and will be used for behind-the-meter services.

Factories suffering from rationed grid electricity could help drive a boom in on-site solar systems, and recent moves to mandate the retrofitting of PV on existing buildings could also lift the market, as analyst Frank Haugwitz explains.

Construction has begun on a manufacturing pilot project to see battery-grade nickel, cobalt and manganese for precursor battery cathode materials (PCAM) in Perth. The facility is expected to be completed in early 2022 and is one of a number of developments that will look to establish Western Australia (WA) as a materials supplier to the growing battery manufacturing industry.

Australian clean energy investment firm Providence Asset Group will roll out hydrogen-lithium battery technology at its solar farms after partnering with the Commonwealth Bank to fund a portfolio of 10 community-based solar plants in regional Victoria as part of the group’s larger ambitions to develop up to 40 ~5 MW solar farms across the eastern states.

A report from Australia’s Future Battery Industries Cooperative Research Centre which analysed the development of battery hubs in the U.S., Germany and Japan, has found that co-location and cooperation between industry and government were key to hub success. For Australia to play the same game, it will have to leverage its wealth of resources, and clean up its act along the way.