Transpower discussion paper on batteries released
Transpower has just released a discussion paper on batteries https://www.transpower.co.nz/sites/default/files/publications/resources/Battery Storage in New Zealand.pdf.
1. Batteries offer greater value when they are located closer to the end consumer, where there is the potential to provide a range of services both for the owner directly, and upstream to the whole network.
2. The value of these services is unlikely to be realised by the consumer until the appropriate market pricing and payment structures, systems and tools are available.
3. The value of each service at different places in the electricity supply chain varies widely across the country and within individual networks.
4. Grid-connected batteries are not presently economic and we consider these are unlikely to be so before 2022.
5. Distribution-connected or community-scale batteries are expected to be economic from 2020.
6. Some specific commercial or industrial end-consumer battery applications are economic now. The case for these would be further strengthened if Time-of-Use lines charging, combined with full open access to all market energy services, were available.
The impact of storage on the distribution system is one of the key issues identified in NERI’s research strategy.