Big Batteries Displace Coal and Lower Costs

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    As the transition to renewables gathers pace those old myths about coal being cheap and reliable are exposed by commercial reality.

    The growth in number of big batteries in Australia’s main grid is displacing coal generation as a provider of frequency control and ancillary services (FCAS) markets, and helping reduce overall costs, according to the Australian Energy Market Operator.

    In its latest Quarterly Energy Dynamics report, AEMO says batteries have increase their share of key FCAS markets from 10 per cent in the last quarter of 2018 to 17 per cent in the first quarter of 2019, thanks to the recent addition of the Dalrymple battery storage plant in South Australia and the Ballarat battery storage facility in Victoria.

    The so-called Tesla big battery – installed at the Hornsdale Power Reserve in South Australia, which entered service in the last quarter of 2017, maintained its market share of just under 10 per cent from the first quarter of 2018, and the last quarter. Darymple took 5 per cent in the latest quarter, while Ballarat took 3 per cent.

    Another interesting development is the increased share in the FCAS market for demand response services, which has upped its share from just under 10 per cent a year ago to 15 per cent now.
    Last edited by sierra: 07/05/19
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