Depleted batteries and very expensive gas: How a two-day heatwave caused near doubling of quarterly prices

The Australian Energy Market Operator, and various government authorities, have made a point in recent weeks of highlighting the benefits of battery storage – both grid scale and household – in some key events over the past summer.

CEO Daniel Westerman this week pointed to January 27 in Victoria, a day which smashed the record for underlying power demand as temperatures hit 43°C, but which was barely noticed by the market operator because of the benefits of home batteries, virtual power plants and grid-scale storage.

Westerman said the event, and others over the season, underlined the case that batteries are delivering benefits in both grid reliability and security, and in lower wholesale prices.

“These batteries, large and small, are fundamentally changing the way electricity is produced, consumed and priced across the day,”he told the Australian Energy Week conference.

“During the first three months of this of this year, grid-scale batteries in the NEM more than tripled the amount of energy they shifted from daytime to the evening.”