Surge in battery storage capacity changing dynamics of the grid
It may not be as spectacular as what's happening to the grid in California, but the impact of the dramatic rise in battery storage capacity in Australia’s biggest grids is likely to be just as profound.
There are now about 15 big batteries operating in Australia, another three working through the commissioning process, and at least another 20 under construction, and dozens more in the pipeline.
It is widely thought that battery storage will be the technology that delivers the final blows to fossil fuels in the grid, initially to coal and finally to gas.
In terms of overall generation, battery storage accounts for just 0.2 per cent of the total supply into the country’s main grid in the March quarter.
But at the same time, battery storage has seized control of 57 per cent of the 10 markets that make up frequency control, and is moving into the inertia market too.
Battery storage is also making its presence felt in the morning and evening peaks, with an average output of 217 MW during the first quarter.
According to the latest QED, net battery revenue in the first quarter more than doubled from the same period a year ago to $47.8 million.
Unsurprisingly, the state that captured most revenue was South Australia, which leads the country (and the world) with a wind and solar share of 75 per cent of generation.
Queensland batteries had the next highest increase in net revenue, with a $7.2 million increase from Q1 2023 to $10.4 million in Q1 2024.