Batteries provide unparalleled flexibility, de-risking the evolution of the NEM from fossil fuels to renewables.
Since it was first established in 1998, the National Electricity Market (NEM) has undergone a significant transformation – seeing the lowest coal-fired generation and highest renewable generation in its history in Q4 20241.
Whilst this is a milestone for the energy transition, it also presents new challenges for grid stability as the NEM adapts to an evolving energy system.
Pacific Energy Managing Director – Connected, Mark Sinclair, explained that one such challenge in the NEM is an oversupply of electricity from rooftop solar in the middle of the day.
“This can cause issues such as unstable voltages and power flowing in directions that the grid was not designed for,” he said.
Another fundamental concern is that as coal-fired generators continue to retire, the NEM loses the physical inertia that has historically been responsible for keeping the grid balanced, leading to concerns about reliability.
Complex problems require complex solutions, Mr Sinclair said – and one shines above all the rest.
A stable energy future
Battery energy storage solutions (BESS) are unmatched in their ability to provide advanced grid support services that are essential for the operation of a modern, large-scale power grid such as the NEM, Mr Sinclair said.
One of their superpowers is strengthening the grid to maximise the benefits provided by clean energy sources.
For example, when it comes to surplus solar, BESS can absorb excess power close to where it’s produced in the middle of the day and then discharge it during the evening when it’s needed most. This also has the added benefit of reducing energy prices.
“BESS can also replace the all-important physical inertia that has previously been provided by large, rotating machines at coal plants with intelligently controlled synthetic inertia,” Mr Sinclair said.
This means that the grid can remain stable and resilient, even in the face of the fluctuating renewable energy sources such as solar and wind.
Reliability on the fringes
Customers living at the fringe of the grid often experience longer and more frequent power outages, Mr Sinclair said.
This is partly due to the distance from the central power source and increased vulnerability to extreme weather and bushfires.
“Grid-connected BESS with islanding functionality can help improve the quality and reliability of power supply to remote and fringe-of-grid customers by disconnecting from the grid during an outage to form an electrical island,” Mr Sinclair said.
Renewables can also be added to the island to form a fully functioning microgrid, capable of operating autonomously for long periods of time.
With this capability, unreliable power lines or those running through high fire danger areas can be temporarily or permanently de-energised without compromising the quality of power supplied to customers connected to the microgrid.
Supporting the NEM
A BESS is the most sophisticated piece of technology connected to the grid, Mr Sinclair said.
Because of this, implementing BESS solutions requires extensive knowledge and planning to maximise long-term benefits such as grid strength, renewable integration and grid resilience during natural disasters.
“Finding the right location, sizing the system correctly and selecting the right technology all significantly impact the long-term benefits that BESS can offer a power system,” Mr Sinclair said.
With nearly 50 off-grid power stations in Western Australia alone, Pacific Energy has extensive experience designing BESS suitable even for Australia’s harshest conditions. The company has progressively pursued the decarbonisation of these off-grid systems over the last five years by introducing renewables and BESS.
“We now have multiple large-scale power systems that can run for long periods of time on renewable energy and BESS alone,” Mr Sinclair said.
Now, Pacific Energy is using this experience to bring its leading BESS solutions to the NEM.
“The challenges we have encountered and overcome while decarbonising our systems are the same challenges that are now being experienced by the NEM – just on a different scale.”
The company’s expertise and in-house capabilities around power system modelling, renewables integration, and BESS deployment can be directly applied to NEM projects to tackle the issues it is currently facing.
“This means we can offer clients high-quality technical outcomes that have already been tried and tested,” Mr Sinclair explained.
“We’ve also built and installed hundreds of stand-alone power systems (SPS) and hybrid integrated power systems (HIPS), so we understand the multitude of applications batteries can be used for.”
One of many BESS projects Pacific Energy is delivering is a customised 336kWh system for Brisbane Airport Corporation (BAC). It forms part of BAC’s pilot program to learn about the role BESS can play in a consumer energy resource setting and is set to trial the benefits of battery storage in the airport’s electrical network, including maximum demand reduction, storage of excess solar generation and power quality support.
“We also produce hybrid renewable solutions and we’re seeing increasing demand for UPS-like functionality and spinning reserve, virtual synchronous machines, diesel genset substitution and firming for new fuel alternatives.”
Local solutions
Pacific Energy’s BESS are designed and manufactured in Australia to suit Australian conditions and align with how Australians use energy.
“We manufacture our units in-house to meet the specific requirements of our partners, which means we’re not limited to standard sizings or control methodologies, and we’re not impeded by international supply chains,” Mr Sinclair said.
Manufacturing in Australia also means that Pacific Energy’s design engineers are able to visit the site and design a custom solution with intimate knowledge of the nuances of the site and how the battery would be used, rather than having a standard offer that is unlikely to be the perfect fit.
“We conduct extensive planning and engineering studies to ensure that the BESS is sized and located correctly, and we employ high-quality, proven solutions from trusted suppliers that can deliver and support the solution throughout the system’s operational life,” Mr Sinclair said.
As Australia’s only end-to-end provider of all renewable energy technologies, Pacific Energy’s customised solutions are supporting the NEM’s renewable transformation, leading the way to a clean energy future.
For more information, visit pacificenergy.com.au
