IFocus
You are arguing with a Galah
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Origin energy, which has already committed to spending $600million to develop a 460MW battery at the Eraring site, and now it says it will replicate this two battery across the rest of the NEM, although it will likely increase the battery size to 77MW before it starts on other areas.
From Evil Murdoch press
Like the AGL battery site, I would love to see the economic models that underpin this decision, and what volumes of electricity they expect 9or are guaranteed), and at what prices.
Edited when I did some quick calculations.
I have read that on average, there are around 70 days in Australia when the sun does not shine and the wind does not blow enough to require secondary intervention into the market.
According to the article, the 460MW can supply power for two hours.
A quick calculation of the return gives a tad under 13 million a year.
At that rate, it will take about 35 years to get the return on capital invested, without including any profits.
There may be other sales at lower values, say overnight when the sun is not shining, but there will also be maintenance costs, and maybe financing costs to take into account.
I am certain they know what they are doing.
Mick
And there lies the problem who pays, keep in mind that the battery does offer some storage in a very short duration which may allow for system recovery in the event of a system wide fault (unlikely to be resolved however in that time frame) it will however provide system stability (if sized correctly) for some system issues.
As a rule you don't get payback on this stuff but require it none the less.