This article is part of our New Energy Insights series from our Energy, Infrastructure and Resources team. Stay tuned for regular updates and commentary on topical issues across the sector.
On 15 July 2021, AEMC announced two new reforms designed to promote and incentivise the use of battery storage systems in the National Electricity Market (NEM).
The first of these comes via a draft plan designed to better integrate energy storage technologies in the NEM, making it easier for small batteries to earn extra income and to reduce the logistic hurdles large batteries have to cross to participate in the NEM.
The second of these reforms has been delivered by AEMC through a final rules determination to create new markets to financially reward ultra-fast energy providers (ie BESS) who deliver energy to the grid to stabilise system frequency. The new market will provide payment to providers that are able to respond to fluctuations in just one to two seconds, which will mainly benefit solar and battery projects. The new fast frequency response market will commence in October 2023.
We will be considering the effects of these reforms further in an upcoming article.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
