Megapack: Utility-Scale Energy Storage
The energy regulatory model in Australia is complex, and broken. And rather than simplifying it, it is going to be made even more complex, and probably more broken, to resolve the problems.<p>Tesla is not the problem, the 30 minute bidding model, and the state&#x2F;federal divide on energy policy, and the monopoly capital rent-seeking behaviour of encumbent privatized generators using coal and gas, and guaranteed yields on capital investment, and weak regulatory oversight, and a lack of national coordination, maybe they are the problem.<p>But Tesla exposes the problem: the Neoen battery stack has been fantastic, but needs to be kept in perspective: To use this for more than FCAS (frequency stability services) nationwide, means re-building the national transmission grid to favour battery models. Parliamentarians got up on their hind hooves and brayed about how it couldn&#x27;t keep lightbulbs on for more than 20 minutes and was a waste of money: They didn&#x27;t for one minute admit it wasn&#x27;t designed as a longterm power store, but as a frequency-control store, stability, and for peak-price bidding to cap off supply-price disfunctions, its working fine: Something like 60% of its capacity is for private bid to earn money, 40% contracted to the state for their goals. It is a real game changer but needs to be understood, its not like a Pumped Hydro unit, or a synchronous condenser (although it is more like that, than PHES) It is its own beast. Its response speed is so fast, the regulatory behaviour models have to adapt to cope with it.<p>A Five minute bid pricing model is coming in under 2 years I think. I hope the majors don&#x27;t work out a way to &quot;game&quot; it because my hope is, other mega-scale battery and PH systems will be onstream then, and be able to survive in it, and drive some more coal and gas out of the system.<p>We have a fictional belief in &quot;base load&quot; power here rather than responsive power. We also lack useful tools like demand management which can be used to bid alongside supply for pricing to avoid having to turn on nasty dirty generators, when the option to time-shift load exists (supermarkets and places with huge thermal mass can time-shift their AC and cooling or heating budget, and so avoid load)<p>Meantime, people are arguing for a de-centralized model using household batteries where resilience is kept in the customer distribution net, as well as at the transmission net level. There are competing pressures around &quot;how shall we fix it&quot; which are not simple.<p>If you want to read a good overview of this, look for stuff written by John Quiggin, an economist in Queensland who has written on the stuff-ups in privatized energy supply in Australia and the market failure.