Value proposition

‘Excellent value proposition’: Australia’s power market volatility attracts UK’s GridBeyond

The growing volatility of electricity supply and growing demand for distributed energy solutions in Australia were among the motivations for UK-based smart energy company GridBeyond to set up offices there.

Energy-Storage.news heard from representatives of GridBeyond, which already has operations in the UK, Ireland, US and Japan, that there is a “great value proposition” that the company’s suite of services, including optimization of energy storage assets, can target the National Electricity Market (NEM) in Australia.

GridBeyond will deploy its technology platform in the NEM, which spans five Australian states and provides wholesale market opportunities and is where Frequency Control Ancillary Services (FCAS) to balance the grid are purchased.

In addition to energy storage services, generation asset optimization, demand response and virtual power plant (VPP) services will also be areas where the company seeks to acquire customers for the platform. form based on artificial intelligence.

These could include commercial and industrial (C&I) customers and electric vehicle fleet operators who may have access to grid balancing market opportunities.

“There is a great value proposition in Australia given its electricity consumption, the size of the industrial activity and the huge amount of volatility present,” the GridBeyond representative said. Energy-Storage.news.

“Probably the biggest concern of consumers and Australian market stakeholders is protecting against energy price volatility and controlling electricity costs. Some of the Australian states are among the top five most volatile markets in the world. world, so this is a huge concern to address.If you have a good wholesale market price forecasting model supporting battery activity, this can be a very effective vehicle for protection against volatility and/or revenue generation through arbitrage, for example,” the rep said, adding that FCAS markets generate additional revenue, which can help further offset electricity costs.

As more and more renewables come online in Australia, the need for fast frequency services that help match generation with demand and maintain frequency – and therefore stability – of the grid will continue to grow. ‘increase.

Recent and ongoing changes to regulations, rules and the structure of the NEM are also enabling renewables and battery storage to outperform fossil fuels, particularly coal generation, as Australia’s energy market operator (AEMO), which designs the market, increasingly appreciates fast response times and the ability to digitally control batteries and other distributed energy resources (DER).

GridBeyond considers FCAS to be very similar in scope and requirements to the Irish DS3 network services market in which it already has extensive experience, while its work in the UK to date has encompassed other services that he thinks will be very useful to him like capacity and balancing. markets. It delivered them in both behind-the-meter and in-front-of-the-meter applications.

“GridBeyond has developed an AI-based trading platform that is able to combine multiple forecasters, variables, parameters and constraints into its algorithms and solvers to further optimize trading opportunities in an automated manner, so it is a key source of value in a market with such high levels of wholesale market price volatility,” the rep said of the Australian launch.