Tesla, Snowy Hydro, and other major suppliers of Australia’s major power grid storage capacity, said the proposed rule changes would be a tax on their business that discourages investors and delays the decarbonization of the industry. I’m warning you.
The Australian Energy Markets Commission (AEMC) will announce final decisions this Thursday on new rules for integrating batteries, pumped storage and other forms of storage.
AEMC decision, Released in JulyHas offended many companies by ignoring the exemption recommendations from the Australian Electricity Market Operator (AEMO) and proposing to charge storage providers to draw electricity.
In its submission, battery maker Tesla, which supplies some of the largest storage to the national electricity market, said that this fee “kills the commercial viability of all grid storage projects and is non-exclusive to alternative networks. It causes efficient investment, “he said, with consumers paying higher costs.
Snowy Hydro, which is building a huge Snowy2 pumped storage power project and already runs a small project, said it would put the investment at risk if the proposed changes were implemented.
“This is a major policy change and represents a tax on infrastructure that is critical to achieving a renewable future,” says Snowy Hydro.
AEMO itself argued that it was important for storage providers to “do not hesitate to connect to the grid, as it brings net benefits to the power system by charging during times of low demand.”
Australia’s power grid faces economic and engineering challenges as it adapts to the advent of low cost and low carbon alternatives to fossil fuels.
Rule changes are needed to describe operators that can both supply and supply electricity, but how they are implemented can have long-term implications for the technology that is encouraged or repulsed. Independent experts say they have sex.
“You don’t have to do this,” said Bruce Mountain, director of the Victoria Energy Policy Center. “In the UK, regulators addressing the same issue say they don’t pay system fees when storage devices draw power from the grid,” he said.
The prospect that storage operators will have to pay transmission charges is “dramatically” to their profitability, as their business model depends on the difference between the price of electricity paid and the amount of money it can sell. It may affect you. Gas generators and network monopolies will benefit from this change, according to Mountain.
AEMC spokesperson said the Commission had broadly consulted, including those who opposed payment for outbound access.
“The market is increasing its energy storage to strengthen the growing amount of renewable energy and to meet the growing need for critical system security services as the fleet of aging thermal generators retires. We are moving towards a future that we depend on, “said the spokesman. I decline to elaborate on the final decision before it is published.
“As the energy sector continues to decarbonize, a regulatory framework needs to facilitate this transition,” officials said.
AusNet“Technical neutrality is paramount to the connection of batteries and hybrid units to both distribution and transmission networks,” said the operator of Victoria’s energy grid, but in all cases. It does not reverse charge the storage access to the network.
“”[Ausnet] We support a clear exemption framework for energy storage providers, “said a spokesman. “Batteries and other hybrid facilities are advised to exempt the use of transmission of system charges if they bring net benefits to network customers.”
We do not know who supports charging storage access to the network in all situations.
“Batteries and hybrid facilities that consume energy from the network should not be given preferential treatment over other customers or generators.”
However, Jonathan Upson, Principal of Strategic Renewable Consulting, said AEMC wants to tax the electricity flowing through the battery twice in order to pay for the network. It’s an hour or two later, but this time the customer pays.
“The AEMC decision has the same rationale for excluding flanking credits for all dividends, resulting in double taxation on the company’s profits,” he said.
Christian Zuur, director of energy conversion at the Clean Energy Council, said many of AEMC’s proposals were constructive, but price uncertainty “neals these benefits, or in some cases outweighs them.” “.
“Risk awareness” is important because potential new entrants do not know the fees they will pay to connect to the grid and existing operators may be able to reopen their connection contracts.
“Investors are focusing on potential risks, which even impacts the cost of project integration,” he said.
As a result of the new charge, more people will be able to install batteries on the premises and draw power from their solar panels, which could reduce their reliance on centralized networks, according to Mountain.
“Ironically, it encourages customers to become more and more dependent on the grid,” he said. “It’s like earning a dominant profit over time at your own expense.”
Separately, the latest version of the Clean Energy Council Confidence Index helps state leadership to motivate investors to invest in renewable energy, even with the high federal emission reduction targets for 2030. It shows that it is useful.
Overall, investor confidence has risen from 6.3 out of 10 to 7.3 in the last six months, especially in response to strong commitments and policymaking from the state government on the East Coast. Stated.
“The results of this latest study show the economic value of policies that reduce power generation emission footprints, support regional centers and create jobs. Investors raise global temperatures to 1.5 degrees Celsius. We are aware of the opportunities created by limiting, “said Kane Thornton, CEO of the Council.
Among the states, New South Wales, Victoria and Queensland were leading in terms of positive investor sentiment.
Correction: This article was revised on November 30th. Earlier versions stated that Ausnet supports rechargeable storage for network access. A spokeswoman said he would support a fee exemption if certain conditions were met.
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