Australian Chart of the week | VNI West RIT-T: another route-to-market for battery storage?

Over the last week, we have been reading through stakeholder submissions to the Victoria to New South Wales Interconnector West (VNI West) Regulatory Investment Test for Transmission (RIT-T) Project Specification Consultation Report (PSCR). For the most part, the submissions were in support of options 7 and 6 (Figure 1). However, there was one submission that stood out, a non-network option to increase transfer capacity between Victoria and New South Wales from Fluence.

Fluence believe that the VTL can address near-term issues while enabling AEMO and TransGrid to evaluate further options at a later date. However, their proposal also fits in with the Victorian Govt’s System Integrity Protection Scheme (SIPS) program –to allow up to 250MW of additional import over VNI at peak times. During peak periods in Victoria, there tends to be increased output from generation assets in the Snowy region which has the practical effect of restricting southerly flows from NSW (at these times, flows can be restricted to only ~26% of capacity or ~350MW). Locating a battery at the end of this constraint can allow increased energy to be provided to Victoria when it otherwise would not have been possible.The proposal involves installing two 250MW/125MWh batteries that would operate as a Virtual Transmission Line (VTL) – at Wagga Wagga and South Morang substations respectively. 

Related thinking

Regulation and policy

Australian Chart of the week | EnergyConnect: transformational highway or white elephant?

Last week, the AER delivered their final regulatory approval for Project EnergyConnect (PEC) with total costs of $2.28b. This signifies the end of a process that began back in 2016 when the initial project specification report was released. There was some uncertainty around the viability of the project. However, a $295 million...

Low carbon generation

Australian Chart of the week | A view of captured prices by technology in New South Wales

This Chart of the week examines the historical captured prices of selected technologies within NSW for the last 10 years. Figure 1 shows the historical rolling monthly average of captured prices of various technologies within New South Wales against the monthly generation of variable renewable resources including small scale rooftop....

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

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

Chart of the week | Increasing electricity balancing costs and an increasing System Operator role

Last week saw the publication of Ofgem's review of GB energy system operation. This makes recommendations that the roles and functions of the electricity and gas system operators need to change in light of net zero. In this week's 'Chart of the week', I wanted to focus on one aspect...

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...

Low carbon generation

Chart of the week | What might compete in upcoming Capacity Market auctions?

The next round of Capacity Market (CM) auctions are set to take place in March 2021, starting with the T-1 (Delivery Year 2021-22) on 2 March followed by the T-4 (Delivery Year 2024-25) on 9 March. The prequalification window for these auctions have been open since 20 July 2020 and...