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Mandating storage or fcas capability for new developments is not the solution, as it would make such developments more expensive and less appetising to develop
by arbitrary_name 8y ago
Mandating storage or fcas capability for new developments is not the solution, as it would make such developments more expensive and less appetising to developers.
Strengthening the market for those services and working with AEMO to drive the networks or third parties to provide these services is the better option in my opinion.
The recent rule changes for 5 minute settlements in the wholesale spot markets will also alter the financial incentives for very fast start generation and drive investment in battery storage, perhaps even in the residential market.
- ggm 8y agoI don't agree that mandated storage or fcas would reduce investment: FCAS capability is mandated in other economies, which are powering ahead with offering it. There are many other sources of cost and risk exposure which outweigh this one. Otherwise, I agree with what you say. Power investment is not 'oh well, I'll put it into fish oil instead' money, these are firms who specialize in this niche and who are looking to invest in this niche. The lack of government commitment to PV and wind is a bigger threat to them than a requirement to spend more capital including storage and frequency supply logic.