Energy Unplugged by Aurora EP.245 Matt Grover on Battery Dispatch and Economics
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.
