Tesla spent less than 100 days in the southern part of Australia, the world's largest lithium-ion battery pack - the Hornsdale Energy Storage System (HPR), which has had a huge impact on the local energy market. The /129MWh energy storage system reduced the price of electricity market ancillary services in the region by 73% after the first operation for six months, and supported the fragile grid in the region. BNEF concluded from the development of this energy storage project. Eight major experiences, and carried out a specific analysis.
1. Diversified income sources are the advantages of HPR:
While competing markets are making huge profits, revenues similar to capacity tariffs provide long-term stability for investors seeking robust returns.
2. FM and ancillary services (FCAS) are profitable:
FM and ancillary services are the main source of income for HPR, accounting for 60% of its total market revenue.
3. First-in-comer advantage:
As a pioneer in this field, HPR has a strong source of revenue and may erode future project profits. HPR and Enernoc's demand response business has led to a decline in FCAS prices in southern Australia in the first quarter of 2018 by as much as 73%.
4. Flexibility and complexity coexist:
Compared with the total number of auctions of other power generation companies, HPR re-bids to bid more frequently. As a large number of energy storage projects are built, the power generation side becomes more flexible, but it also complicates the operation of the power system.
5. Location of the grid:
Direct access to the grid gives independence to HPR operations, but it is not allowed to use the abandonment of wind power projects in its same location for charging.
6. Quality of service is as important as the number of services:
Market operators have found that the frequency response speed and accuracy of HPR are higher than traditional generators on the market, but there is no market mechanism to recognize and reward this high quality service.
7. The value of the battery is underestimated:
The current market operating model limits the number of batteries and revenues that HPR operates in the emergency services market. Specifically, HPR is only allowed to bid between 40% and 80% of its actual capacity, which greatly limits its profit margin.
8. The energy market needs modernization reform:
Fast response technology is not recognized and rewarded in the existing market. The design of the emergency frequency response market and related new regulations in the Northeastern United States, the United Kingdom and Ireland is worth learning in other countries.
a set of data
8.1 million Australian dollars
Total revenue from HPR from December 2017 to May 2018
73%
FCAS prices fell 73% year-on-year after HPR and another demand response project settled in southern Australia
60%
HPR’s revenue from ancillary services as a percentage of its total revenue
