AEMO - Battery Storage to Ease Annual Peak Demand
A report titled "2015 Emerging Technologies Information Paper" has forecast that the uptake of battery storage over the next 20 years could result in a decrease in the probability of the maximum demand exceeding forecasts in the National Electricity Market (NEM). The Australian Electricity Market Operator's (AEMO) report found that the reductions in the peak annual demand would be improved most significantly in Victoria and New South Wales.
In total, AEMO forecasts that by 2035 there will be 7,982 MWh of installed battery storage capacity in the NEM. Over the next few years as Tesla begins to manufacture their Powerall and as other market competitors like Panasonic begin to install batteries in the market, AEMO as forecast that 529 MWh of installed capacity will be achieved by 2018.
This report heralds the first of its type for AEMO, looking into the impact that battery storage technology, as well as electric vehicles, will have on the NEM. The need and the significance of this report is essential to AEMO as it plans and forecasts growth and modifications in the network into the future.
Consideration of the explosion of Solar PV which has happened over the past 5 years - which was greatly under-forecast - has been noted in the report, and that in future the forecasts may be subject to significant revision. The report has already received criticism for underestimating the uptake of batteries with some key assumptions - such as, batteries only being installed with new rooftop solar.
The speed with which the storage market is developing is sure to send shockwaves through the energy industry much in the same way that solar did back in 2009/2010.
Read the Report: AEMO - 2015 Emerging Technologies Information Paper