Chart of the week | Battery overload: Storage and the FFR market

Announcements of new grid-connected battery developments seem to occur on an almost daily basis.  Many of these developers are looking to enter the Firm Frequency Response (FFR) market. This is primarily due to the potential value as well as it suiting the characteristics of batteries.

In this week’s Chart of the week, we observe the values for this service dropping over the last two years. With more entrants challenging the larger pumped storage incumbent providers.

To keep reading, please log in to your account

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Low carbon generation

Australian Chart of the week | “I feel the earth move under my feet”: from high to lows

We have seen a dramatic shift in FCAS price fortunes over the past year or so, going from all-time highs of ~$229.3mn in Q1 of 2020 (due to the separation event) to only ~$40.1mn in Q1 2021. Since 2019 we have also seen regulation raise prices decline from robust prices...

Energy storage and flexibility

Chart of the week | Interactions between frequency response markets – can’t get enough

Frequency response markets are in a period of transition, as the Electricity System Operator (ESO) looks to usher in a new suite of three faster-acting frequency response services that can better manage frequency changes on a low inertia, high renewables system. Dynamic Containment (DC), the first of these new services,...

Energy storage and flexibility

Australian Chart of the week | Round and Round the Market: Black Coal vs Batteries

This year appears to be the year of the battery, with the volume of projects that have been announced or in some stage of planning approaching the 10GW mark it is worth taking a look at how batteries are performing in the FCAS markets over the last two years. Currently...

Energy storage and flexibility

Australian Chart of the week | Show me the future: can storage bank on FCAS being bankable?

Previously we have examined the importance in FCAS prices for the revenue stream for batteries. With a growing interest in batteries in the market, this ‘Chart of the week’ takes a deeper look into the impact of bidding behaviour on the Regulation Raise price since 2012. From January 2012 until...

Energy storage and flexibility

Chart of the week | Wider Access: BM sees annual increase in smaller participants

In recent years National Grid ESO’s Wider Access programme has rolled out several measures to support the entry of smaller and non-traditional participants into the Balancing Mechanism (BM). This 'Chart of the week' looks at the level of new entry into the BM over the past year. Specifically, it looks...

Energy storage and flexibility

Australian Chart of the week | Yesterday, [battery storage] was such an easy game to play

FCAS continues to drive the majority of revenues for battery storage in the NEM (there are five active utility-scale battery storage projects operating in the NEM; three in SA and two in VIC), however given the forecast pipeline of prospective storage projects (with two 500MW+ projects having already been announced...

Energy storage and flexibility

Australian Chart of the week | I can’t believe it’s not b[e]tter?… spreads getting better in NSW

The Federal Government announced this week that they will step into the electricity market (through the state-owned Snowy Hydro) to build up to 1,000MW of gas-fired generation to fill the gap left by the Liddell Power station for the 2023-24 summer unless the market can demonstrate final investment on dispatchable...

Energy storage and flexibility

Australian Chart of the week | Push it to the limit: the evolution of MPC & market tightness

With summer officially starting last Tuesday, the National Electricity Market (NEM) is about to go through the season that typically has the highest demand. Market tightness usually seen during summer sometimes pushes power prices to their maximum level – the Market Price Cap (MPC) – currently set at $15,000/MWh. In...