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Home News

Report: battery is best for electricity peaking services

by Imogen Hartmann
April 12, 2021
in Batteries & Storage, Electricity, Networks, News, Projects, Renewable Energy, Spotlight, Sustainability
Reading Time: 2 mins read
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The Clean Energy Council has released a new paper which has found that, based on cost, flexibility, services to the network and emissions, large-scale battery storage is now the better choice for electricity peaking services.

Clean Energy Council Chief Executive, Kane Thornton, said, “Large-scale batteries are now undoubtedly the best option to meet periods of high electricity demand.”

According to the Clean Energy Council’s new paper, Battery Storage – The New, Clean Peaker, batteries are cheaper than open-cycle gas turbine plants for providing electricity peaking services.

The paper compares a new 250MW gas peaker with a 250MW four-hour grid-scale battery, finding that the battery provides cost savings of more than 30 per cent while offering greater flexibility and significantly reducing emissions intensity.

“Batteries can provide a premium peaking service in periods of high demand traditionally met by peaking gas plants,” Mr Thornton said. 

“Batteries can ramp up quickly, have near zero start-up time and provide a better frequency response.

“Electricity demand must match supply at all times, and so on very hot days when demand spikes we quickly need more supply to respond. 

“Sometimes, it’s only for a few seconds; other times, it’s for a couple of hours. In this respect, the capability of large-scale batteries is unrivalled. 

“Over the past three years, batteries have been essential in keeping the grid stable and keeping power flowing to energy users.”

The Australian Energy Market Operator anticipates that between 6GW and 19GW of new dispatchable resources will be needed across the National Electricity Market by 2040. Batteries are now the most prudent choice to meet this level of dispatchable capacity, a fact reflected in the market by both real projects and an estimated $6 billion investment pipeline.

Since 2018, 8.9GW of large-scale battery storage has been financially committed, proposed and/or approved in Australia. This represents 42,000 construction and installation jobs and 11,000 ongoing operations and maintenance jobs.

This staggering momentum has seen 15 large-scale battery storage projects announced this year alone, representing 6.6GW of capacity and $4.3 billion in investment.

“The commercial case for batteries will continue to improve as battery technology advances and new markets are established to reward the services they provide,” Mr Thornton said.

“However, long-term investment certainty remains reliant on appropriate market reforms and forward-looking policies that incentivise new, flexible technologies that are needed to complement renewables.”

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