Battery storage is here – but who will benefit?

Aerial view of suburban neighborhood urban sprawl in Las Vegas, Nevada.

As the hype generated by Telsa’s “Powercoffin” still echoes through the media, the reinforcement of the knowledge that affordable storage is essentially here begs the question, who will it benefit? There is one thing for sure, unit dwellers and renters are most likely to pick up the tab for reduced consumption-based revenues.

Storage should reduce demand peaks on the grid at more significant times such as evening and therefore reduce network costs, but this is not likely to occur with organic take-up of battery storage. There needs to be a revolution, and retailers have the key.

Retail deregulation is in place, or about to be put in place in most jurisdictions, this, in theory should allow retailers to create a perfect tariff structure for renewables and storage, and indeed off peak fossil fuels (at least in the medium term).

The tariff would look like this: It would be a five minute interval bi-directional tariff with live demand D.R.M. (demand response management) data from the grid. Charging would reflect instant demand requirement of the entire grid, if you chose to consume power when the demand was high, you will pay a premium, likewise if you have energy stored, you could export at a premium.

If the network is low on demand you may wish to carry out energy intensive activities and/or charge your storage unit. All of this can happen automatically through D.R.M. software and signals and D.R.E.D. (demand response enabled devices).

Given this perfect tariff structure it now becomes possible for a unit dweller or renter to store solar or off-peak power in a portable battery storage device which simply plugs into an outlet in the property.

The solar or off-peak power is transmitted from any source via an underutilized grid, hence the energy seller gets little but the receiver pays little as well. Again the reverse scenario is the heavy peak user will pay any seller a premium for energy, reflecting both a supply premium plus a surcharge for creating grid capacity stresses. Which is exactly the way the big end of town currently operates.

This all-inclusive and fair system will not only promote solar and storage installation, but will cause the desired explosion in domestic battery storage, even for non-solar owners.

The missing piece in this story is the state owned or state sponsored distributors, who’s fixed charges will be put under great stress under this model. powerlines_1

This is where the retailers have the opportunity to force a change upon these quasi poll (yes poll) tax collectors, The cries of the solar have nots will be all but silenced and the future of renewables will be assured in a competitive and truly cost reflective energy generation and distribution model.

Coal plants will see more consistent loads with less spinning reserve, thus reducing their costs, gas peaking plants will only operate when power is at a premium, rains days etc.

In reality no one loses under this scenario, except perhaps state treasurer, who can then find a way to tax us from the front anyway.

Comments

6 responses to “Battery storage is here – but who will benefit?”

  1. phred01 Avatar
    phred01

    great idea in theory but the power generators & retailers will be working behind the scenes making sure their business model remains the same. SFT if used would achieve the same ie 1 for 1 because industry uses power during the day while people are @ work

  2. Jacob Avatar
    Jacob

    I have an idea for apartment dwellers.

    How about flow batteries get installed at apartment blocks. And once a week a truck comes in to exchange the liquid in them.

    Now the cost of storing electrons in flow batteries is said to be 12-17c/kwh. Generating power would be around 10c/kwh.

    So it all comes down to how much would Toll or Linfox charge to ship electrolyte once a week.

    1. Mike Dill Avatar
      Mike Dill

      The batteries should be charged from wind and solar, as available. The cost for that electricity should be closer to 3 or 4 cents per KWH when there is ‘too much’ wind and sun.

      1. Jacob Avatar
        Jacob

        Yeah I know the cost of generating electrons from solar power is going to crash to 5c/kwh.

        That makes it even more important for this website to contact Linfox and Toll and get a price on exchanging the fluid in flow batteries once a week.

        Have a solar power station 50-100km from Melbourne and have weekly deliveries of electrolyte to an apartment block in Doncaster.

        Even apartments can go off grid. Or threaten to go off grid in order to get the grid to reduce fees.

  3. Mike Dill Avatar
    Mike Dill

    I love the idea of constantly variable rates, but I am not sure who would be setting them. I also believe peak demand charges and demand response will be in place almost everywhere in a few years. Storage will be nearly a requirement in that future.

    The national electric market might be the place for variable rates to be set, but allowing the corrupt states to run the market is just as problematic as what we have now.

  4. Chris Fraser Avatar
    Chris Fraser

    Hopefully the 2007- 2012 grid investment orgy won’t have a big impact on the fixed component of tariffs. I mean that since existing tariff structures should eventually amortise that huge investment down to zero, we then have a reasonable capacity grid which won’t need a great deal of expense (outside of maintenance and making it smarter perhaps). That will make way for tariff structures like this, which are more reflexive of demand, response and new technology. This could not have been thought of by a conservative government.

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