Summer is approaching, and with it comes the scent of barbecues, the joy of beach trips, and unfortunately, the looming threats of blackouts, particularly for Victoria and South Australia. A recent Renew Economy article throws light on the increased blackout risks due to the early closure of coal power plants across the national electricity market. The concern is further exacerbated by the challenges of El Nino and delays in building the required transmission infrastructure, as outlined in our previous article which we identified as being on par with investing in solar and batteries.
For commercial users – industries, farms, large properties, and development projects – the value of a battery goes beyond mere power storage. It’s about energy security, CO2 reduction, and significant savings on electricity bills.
Source: AEMO
As the country is ramping up its renewable energy sources, there's an evident challenge of intermittency – the sun doesn't always shine, and the wind doesn't always blow. Here's where batteries step in. They store excess energy during peak production times and discharge it during low production or high demand times, ensuring security of power supply.
Batteries can potentially save industries and farms a significant amount on their electricity bills. With energy storage, businesses can consume power during off-peak times when it’s cheaper and use stored power during peak times, circumventing volatile electricity costs.
COVID 19 and the war in Ukraine have highlighted how fragile our supply chains are and how our energy market is still exposed to macroeconomic factors. With the continued push towards a low-emissions economy we must learn from these events and ensure that energy supply chain disruptions are minimised as much as possible. It is no longer good enough to produce green energy on site but we must also think about storing it efficiently. With batteries, we can store renewable energy generated on site reducing the need to rely on the grid during high demand periods and significantly increase the resilience of your businesses and industries.
The Australian Energy Market Operator’s (AEMO) annual 10-year outlook showcases a stark picture of potential blackouts across the grid, emphasising the urgency for planned investments in storage projects. While the government underwrites significant investments into new clean power projects, it’s pivotal for commercial users to recognise and invest in energy storage solutions like batteries for their operations.
Recent announcements from the federal government also emphasise the role of batteries in our energy future. The plan to underwrite 600 megawatts of reverse auctions for new clean, on-demand power capacity for Victoria and South Australia with a stipulation for batteries to have at least four hours of storage shows a strong commitment to integrating batteries into our energy grid.
As the industry grapples with the challenges of ensuring energy security amidst a transitioning power landscape, solutions like batteries offer a glimmer of hope. The Energy Renaissance is not just about producing green power but also ensuring it’s stored and used efficiently.
Australia’s energy journey is a challenging one, filled with uncertainties of weather patterns, the pressures of transitioning away from fossil fuels, and the need for significant infrastructural changes. However, with tools like batteries in our arsenal, we are not just prepared for this journey but are also poised to lead it.
The message is clear for industry, agriculture, and property developers: It’s time to invest in battery storage systems and become a pivotal part of Australia’s energy renaissance. Let’s ensure a brighter, greener, and more secure energy future for all.