WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 69
The Business case for
batteries needs to be clearer
Experience in California and Australia is highlighting the need to
couple renewables with batteries to create an effective energy
system. Many existing electricity systems fill the gaps between total
demand and renewable production with dispatchable fossil fuels
generation (often Combined Cycle Gas Turbine CCGT). Capturing the
carbon from this generation is a possible way to run a renewablesdominated system, although this has not been proven at any scale.
Batteries are good candidates to fill this gap.
USA (California) and Australia Case Studies
USA (California)
There are further issues with the way metering works, with the UK
serving as a clear example. The point that is metered is very important
to the interaction between renewables and batteries. If they are
separately metered, then some of the opportunity to collocate and
increase returns is lost as it relies on both network capacity and
interoperability of market schemes for renewables and batteries.
Challenge
California faces issues with excess
solar power during the day and no
solar capacity at night, known as the
California duck curve
The state also deals with climate
change impacts like wild昀椀res and
droughts
Australia faces issues with excess
solar power during the day and
high demand in the evening, like
California
There’s also a lack of clear targets
for battery storage
Approach
The state is leveraging large-scale
battery storage to store excess
solar energy during the day and
discharge it at night
On 25 April 2024, California marked
a major milestone, as it became the
昀椀rst state to deploy 10 gigawatts
(GW) of battery storage capacity
California is also investing in
hydropower and o昀昀shore wind to
complement its renewable energy
sources
Australia currently has 1,705
megawatts of battery storage.
While it’s a low 昀椀gure compared
to California, another 3,200 have
been committed, and the Australian
Energy Market Operator (AEMO)
is expecting around 22,000
megawatts of batteries to be
connected in 2030
Government policies and
investment in large-scale batteries
are essential
Benefits
These e昀昀orts have led to reduced
reliance on gas and fossil fuels,
providing a cleaner energy system
The growth in battery storage also
o昀昀ers economic opportunities and
helps in achieving the target of
100% clean electricity by 2045
Increased battery storage can lead
to more stable and reliable energy
supply, reduced reliance on fossil
fuels, and economic opportunities
through renewable energy
investments
WEMO 2024
FIGURE 3
69
Renewables need batteries
Regulators have not made great progress in linking the roll out of
renewables with batteries. Many schemes, such as the UK’s CfD
auctions, have encouraged renewable deployment, but they have not
been matched with similar schemes for batteries.
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