This project intends to study the problem of storage integration into the NEM under the lens of economics. It will assist in designing the correct incentives for storage operators competing in the market, and by extension, for investment in storage.
Please find the link to our project information on ARENA's webpage.
This project intends to study the problem of storage integration into the NEM under the lens of economics. It will assist in designing the correct incentives for storage operators competing in the market, and by extension, for investment in storage.
It will deliver an updated dispatch algorithm to account for the (new) behaviour of storage as it becomes an increasingly important player in the NEM. It will also develop a new method to value new services that may be supplied by storage operators, such as synthetic inertia. In doing so it will contribute to increasing the penetration of renewable energy in the NEM, whose essential challenges remain intermittency and grid stability.
This project contributes to the realisation of Australia’s energy transition, to emissions reduction and to further the penetration of renewable energy in the grid. There is no large-scale transition without a sizeable storage capacity; that storage capacity cannot be invested in without the correct incentives, and the current NEM market rules do not produce the right incentives. Furthermore, additional investment in VRE capacity without storage will only reduce the value of all VRE assets as prices fall when they can generate.
