Energy Unplugged by Aurora EP.245 Matt Grover on Battery Dispatch and Economics
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May 27, 2025 In this engaging discussion, Matt Grover, Director of Energy Markets at Fluence, shares insights from over a decade in Australia’s National Electricity Market. He dives into battery dispatch economics, addressing the shift from ancillary services to energy arbitrage. Matt explores grid-scale battery growth, innovative energy contract designs, and the importance of demand-side strategies in the energy transition. The interplay between timing, regional factors, and the changing landscape of renewable energy provides a fascinating look at the future of energy in Australia.
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NEM's Extreme Price Volatility
- The Australian National Electricity Market (NEM) is highly volatile, with price caps ranging from -$1000 to $17,500 AUD/MWh.
- This volatility creates significant revenue opportunities, especially for batteries that can trade dynamically on five-minute intervals.
Battery Revenue Dynamics
- Battery revenues in the NEM have shifted from mostly ancillary services to primarily energy arbitrage.
- A significant portion of yearly battery revenue can be earned in just a few high-price days, emphasizing timing importance.
Market Changes Favor Batteries
- Increasing renewable generation and retiring coal plants are creating a bimodal price distribution with low midday prices and high morning/evening peaks.
- These dynamics strongly support continued battery investment to capture price spreads and manage grid variability.
