The energy industry is buzzing about batteries, with declining costs and promising new government incentives set to shake up Australia’s energy market. As more baseload coal generators retire, this is positive news for the grid, helping firm up Australia’s existing renewable capacity with storage.
For Flow Power customers, more affordable and accessible battery storage unlocks additional potential to maximise value from their electricity contracts. Wholesale electricity market price fluctuations can lead to significantly greater savings from a behind-the-meter battery than flat rates or peak and off-peak tariffs.
If you’re a Flow Power customer, you’ll likely be familiar with the Price Efficiency Adjustment. With this feature, you can influence your monthly electricity price by changing when you use electricity to align with cheaper prices – we call this ‘price efficiency’ – and batteries can help significantly improve it.
But if you’re still on the fence when it comes to investing in battery storage for your business, here’s three ways batteries can help improve your bill’s monthly Price Efficiency Adjustment:
1. Batteries can store energy when it’s cheapest
By charging your battery when energy is at its cheapest on the wholesale market, you can store this low cost, typically more renewable energy, to use when you need it.
You can charge your battery from the grid, or if you have existing on-site solar PV, you can charge directly from your panels. Charging directly from your panels will reduce any export charges and the network volume charge if you don’t use all the solar energy your system generates (and exporting during the day can have a negative effect on your Price Efficiency Adjustment).
Charging the battery in this way can improve your Price Efficiency Adjustment, by drawing from the grid when demand is low and clean energy is abundant – the same way shifting your energy use to these low cost, low demand periods improve your price efficiency.
It’s a simple way to save money while supporting the stability of the grid.
2. Batteries can reduce grid reliance when prices are high
Prices fluctuate on the wholesale electricity market but often in patterns. Typically, prices decrease when the sun is shining. When wholesale electricity prices are high, it’s typically due to increased energy demand and a higher ratio of expensive fossil fuels compared to cheap renewables in the grid’s fuel mix.
This is the optimal time to use the stored energy in your battery, helping reduce the amount of energy you need to draw from the grid. Reducing your grid energy usage in this way can improve your bill’s Price Efficiency Adjustment, while also reducing your network charges, which can lead to significant cost savings.
Businesses that have typically struggled to shift energy use away from these peak periods can benefit by using stored energy from an on-site battery. The ability to save cheaper energy for use when it suits your schedule offers greater operational flexibility and can help drive down costs.
3. Batteries can generate revenue for your business
If your business doesn’t need to use the energy stored in your battery, it can be exported to generate additional revenue and support the grid, through demand response or grid stability services such as Frequency Control Ancillary Services (FCAS) or the Reliability and Emergency Reserve Trader (RERT).
Traditionally provided by generators such as coal and gas plants – but now being replaced by batteries – these services are purchased by AEMO to maintain frequency and ensure the stability and reliability of the grid. Businesses that can leverage battery assets may be eligible for financial incentives.
Exporting to the grid at peak times can help improve your bill’s monthly Price Efficiency Adjustment and provides a more sustainable, flexible alternative for managing renewable variability, helping support the market and insulate your business from price volatility as fossil fuel generators retire.
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If you’re an existing Flow Power customer, please reach out to your dedicated account manager. For all other enquiries, get in touch via the link below.
