Enabling investment and innovation
Energy storage systems as instantaneous reserve
Enabling energy storage systems to participate and compete in the national reserves market.
Overview
We decided to finalise the Code amendment published on 6 July 2021 as a draft decision. This will enable batteries to be offered into the wholesale market as instantaneous reserves.
The amendments include new provisions that will enable owners of battery energy storage systems (battery ESS) to offer instantaneous reserve while a battery ESS is discharging.
Timeline
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29 March 2022
Decision —Code amendment to allow batteries to be offered as instantaneous reserves
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6 July 2021
Decision —Amend the Code to enable some ESS owners to offer injectable instantaneous reserve
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Project background
This project focuses on amending the Electricity Industry Participation Code (Code) to enable energy storage systems to fully participate in the national reserves market.
The cost of battery energy storage systems (ESS) has decreased in recent years and will continue to do so. A grid-scale battery ESS is already able to participate fully in the energy market, however it cannot offer generation reserve. This is because the Code defines which specific technologies can offer instantaneous reserve and those definitions were written before ESSs were contemplated.
This project focuses on changing the Code to allow for ESSs to enter the market to enable more innovation and competition in the reserves market. This can benefit consumers by helping competition amongst reserve providers in the wholesale market and help provide a reliable electricity supply.
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