A report examining the commercial feasibility of large-scale grid-connected energy storage has been released by the Australian Renewable Energy Agency (ARENA).
ARENA provided AGL $445,846 funding toward the $1,029,578 project to carry out the investigation, with project partners ElectraNet and WorleyParsons through the Energy Storage for Commercial Renewable Integration (ESCRI) project.
The project explored commercial frameworks that can be used to operate utility-scale storage within the National Electricity Market (NEM).
A business case was modelled around a 10 MW/20 MWh lithium-ion battery connected at the Dalrymple substation on the Yorke Peninsula in South Australia. South Australia has the highest proportion of renewable energy generation in Australia, making it an ideal location for the investigation.
The storage technology examined is not currently commercial.
The analysis also found there are several potential revenue streams for utility-scale storage. Revenue is site specific, and some revenue streams are traded off against others, making it difficult to capture the full value of each stream, according to ARENA.
“Utility-scale energy storage could ultimately enable more value to be achieved from solar and wind farms by supplying generation at times when demand is high,” ARENA said in statement.