The Hornsdale Battery Storage has made a big disruption in the market for electricity in South Australia. Since it can supply electricity almost instantaneously it outcompetes the gas turbine generating plants even though it is a much smaller percent of the total electric supply. The South Australia state has a large amount of renewables – wind and solar – so it needs a source that can respond quickly to changes in wind or sunlight. The Hornsdale does just that. The gas turbines no longer have to be kept running as “standby baseload”, wasting fuel.
Quote from https://youtu.be/O-kbzfWzvSI
<< Tesla’s South Australia Battery Disrupting Gas Frequency Control and Ancillary Services
Tesla’s 100MW / 129 MWh Hornsdale grid battery storage plant in South Australia made A$1m (US$ 800k) over two days in wholesale market.
(1) It ramps from 0 to 100MW in 140 ms
-100x faster than gas.(1)
Tesla’s Battery with just 2% of the FCAS (Frequency Control & Ancillary Services) capacity has taken 55% market share while slashing wholesale prices (gas FCAS revenues) by 90%. (2)
(1) & (2) = RenewEconomy >>
Another quote
<< Batteries – Disrupting Centralized Power Generation
• The grid works like a just-in-time supply chain without inventory
• Grid: inefficient use of Assets
• $$ Billions in generating assets used just a few hours per year
Ex: ConEd – 32% of Generation assets used
<517 hrs/yr (5.9%)
Batteries flatten the demand curve, destroy pricing power and replace generation assets on the grid.
Disruption from Above:
1. Fossil Ancillary Services Disruption
2. Fossil Peaker Disruption
3. Baseload Disruption
Sources: (1) Con edison NY (2) GreenTech Media (3) NREL >>
Stranded Assets
This is where the utilities are hurt the most. They will be left holding natural gas power plants that are no longer profitable – stranded assets – the plants will be losing money.
The battery storage plants can be brought online in less than a year. The Hornsdale storage was online in well under 100 days!
From https://youtu.be/O-kbzfWzvSI
