- – A green hybrid storage solution for Aurora Project takes shape
- – Simulation of past five year data indicates strong revenue prospects
A revenue generating hybrid energy storage solution for the Aurora Project near Port Augusta, South Australia is looking promising, involving a mix of solar PV, batteries and 1414 Degrees’ TESS. Together these allow access to revenue stacks ranging from power purchase agreements (PPAs), ancillary services (FCAS), wholesale energy trading and highly valued long-duration firmed power sales.
1414 Degrees is pioneering this competitive solution for grid stability under the leadership of Marie Pavlik, who is preparing for development by commissioning optimal asset modelling from specialist agencies CQ Energy and ITP Renewables (ITP), and teaming with energy retailers to bid on PPAs.
To support marketing of the Aurora Project power, CQ Energy modelled 20 years of solar PV generation with allowance for declining output. CQ Energy also provided guidance on maximisation of revenue from battery storage including spot price arbitrage and FCAS revenue. 1414 Degrees has used the results for competitive pricing of PPA tenders and offers.
ITP have now provided a progress report using solar profile data collected over several years at the Aurora site to simulate operation of a 70MW solar PV farm with a battery energy storage system (BESS) to maximise National Electricity Market (NEM) wholesale and ancillary services (FCAS) revenue. It varied battery size from zero to 140 MWh and allowed for degrading performance to reflect real efficiencies. The modelling utilised a maximum 70 MW transmission connection as initially accepted by ElectraNet in its Connection Options report for 1414 Degrees. In a subsequent modelling, ITP will extend the optimal revenues from additional long duration (firmed) generation by a 1414 Degrees TESS-GRID.
Simulated system of annual revenue for a 70MW PV plant with battery storage size ranging from zero up to 140MWh under a range of historical NEM market data for South Australia.
Source: ITP Renewables
Their simulation based on the past five years of NEM and FCAS trading showed that an optimum battery size of 70 MWh with sale of electricity from the PV would have generated annual revenues ranging from $44m to $80m. The historical pricing showed that 70 MW of PV without batteries would have generated annual revenues ranging from $12.5m to $28m.
1414 Degrees Executive Chairman Dr Kevin Moriarty, said, “Although based on historical data that may or may not be a guide to future conditions, these revenue simulations are very encouraging for the development of our Aurora Project. We are working to lock in PPA’s to secure cash flows for the first stage of PV generation to complement the BESS revenue streams. The addition of our TESS will provide a complete green hybrid solution for a global market as renewable penetration increases.
The Aurora Project can provide robust system strength throughout the NEM because it is situated on major transmission lines, generating revenue stacks from many different services.”
Background
1414 Degrees is developing thermal energy storage systems (TESS) in South Australia. A NEM connected solar PV farm with BESS and TESS will attract revenues across wholesale energy, frequency control and ancillary services (FCAS) markets. The full system under consideration is depicted in the following block diagram:
The progress report describes the modelling to maximise NEM revenues under a configuration that includes only the Solar PV Farm and the BESS system. The combined system is assumed to be transmission network connected and can participate both in wholesale energy and FCAS markets.
The second phase of this modelling will include TESS-GRID operational dispatch decisions of the complete system.