Update From the Field - February 2021: Australia, energy storage hotspot with a promising future

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Make the most of our analysis concerning key data and trends in the energy storage industry worldwide





Executive summary (2)

New regulations and initiatives discussed this month (5)

Americas (5)

United States (5)

Europe (5)

Spain (5)


Project updates and announcements (6)

Overview of the 2020 market for utility-scale energy storage projects (6)

Projects announced or contracted this month (6)

Australia & Oceania (7)

Projects commissioned this month (8)

Tenders this month (9)

Asia (9)

Americas (9)


Focus of the month: Australia: energy storage hotspot with a promising future (12)

Overview of the Australian energy sector (12)

Australia: an energy storage leader with no intention of backing down (12)

Australia eyes energy storage as a solution to its upcoming power system shortfalls (13)

Revenue streams: upcoming changes to the Australian market set high hopes for energy storage development (15)

Wholesale energy trading: energy prices vary on a state basis and witness high fluctuations due to interconnection incidents (15)

Ancillary services: Frequency Control Ancillary Services make up the most interesting revenue for energy storage systems (16)

Requirements for the registration of a battery system to Contingency FCAS services (19)

Revenue stacking is possible on a single dispatch interval, but regulations remain vague (20)

Evolution of the NEM ancillary service market rules to promote BESS participation (21)

Building the business case for a battery storage system in South Australia (23)




Figure 1. Utility-scale energy storage projects announced/contracted and commissioned in 2020 and 2021 (ongoing) (6)

Figure 2. Australian electricity generation mix (2019) (11)

Figure 3. Overview of the Australian energy storage market (12)

Figure 4. Coal-fired generation and gas-powered generation (GPG) retirements by 2042 (13)

Figure 5. System inertia and strength overview and shortfalls by 2025 (14)

Figure 6. Future Australian electricity mix: storage should help compensate thermal retirement (14)

Figure 7. Daily spreads on South Australia's day-ahead market  (15)

Figure 8. AEMO frequency control service categories (16)

Figure 9. Frequency Control Ancillary Services (17)

Figure 10. Raise FCAS service prices in Australia (18)

Figure 11. Active power response of a 25-MW BESS (19)

Figure 12. Battery FCAS registration (21)

Figure 13. FCAS and frequency intervals (22)

Figure 14. Total discounted costs and revenues for a 20 MW/ 20 MWh battery operating in South Australia (24)

Figure 15. Average FCAS procurement by market over the NEM (26)