There might not be much of an ancillary services market left for other projects.
JASON DEIGN MAY 18, 2018
Figures show that Tesla’s "big battery" in South Australia is so good at delivering frequency control ancillary services (FCAS) that there might not be much room left for copycat projects.
As first reported in RenewEconomy, in its first four months, the 100-megawatt, Neoen-owned Hornsdale Power Reserve, built with Tesla batteries, snapped up 55 percent of all FCAS revenues in South Australia, according to an analysis by consulting firm McKinsey & Company, based on data published by the Australian Energy Market Operator.
In addition to gobbling up FCAS revenues, the McKinsey research showed that Hornsdale’s arrival cut ancillary services prices by 90 percent across South Australia’s eight FCAS markets.
The problem is that Hornsdale has done such a good job of mopping up FCAS revenues that it might have significantly altered the business case for further battery plants.
Exactly how much Hornsdale makes for its owners is not clear, since the figures are not disclosed and in the McKinsey analysis, “We just looked at the societal impact,” Godart van Gendt, the McKinsey expert associate partner who carried out the analysis, told GTM.
However, it is clear that a 90 percent drop in FCAS pricing is going to make things hard for any future players looking to make their money from ancillary services.
“The second and third batteries being built will need to take account of the fact that the ancillary services revenue continues to come down,” said van Gendt.
There are other sources of revenue for battery plant operators, of course. Even the Hornsdale plant doesn’t only rely on FCAS.
According to the Australian Energy Market Operator (AEMO), it has been active in all the markets available on the National Electricity Market, which is the interconnected power system stretching down the east of Australia from Queensland to Tasmania. This includes energy trading on the spot market.
Nevertheless, it is true that frequency response is seen as a particularly low-hanging fruit for utility-scale batteries, and, for instance, helped create the business case for most of the early battery plants installed on the PJM Interconnection transmission system in the U.S.
Van Gendt questioned whether grid-scale battery projects would work in Australia without FCAS revenues. “In 2018, it wouldn’t be a slam-dunk,” he said.
Australia pays more for frequency regulation overall
Van Gendt said it was important to bear in mind that the pricing drop did not necessarily mean Australians were paying less for FCAS on the grid.
While prices had declined, the volume of FCAS payments had gone up, potentially because the Australian grid is having to work harder to balance a growing fraction of intermittent generation from solar and wind power.
Thus, “to report that the cost has gone down would be inaccurate,” van Gendt said.
To give an idea of what the Hornsdale price reductions mean, RenewEconomy said that if the FCAS payments for the first four months of 2017 had been paid at the prices seen this year, Australians would have paid AUD $35 million (USD $26 million) less.
“The entry of two new participants (Hornsdale Power Reserve and EnerNOC) contributed to an AUD $13 million (USD $10 million) reduction compared to Q3 2017,” said AEMO.
That’s not bad considering Hornsdale may have cost around $50 million, based on a statement by Tesla founder Elon Musk. It is also pretty good going for an asset that represents less than 2 percent of the 5.4 gigawatts of dispatchable capacity listed by AEMO in South Australia in 2017.
Opening up new revenue streams
For the broader energy storage market, the good news about Hornsdale is that it may help open up further energy storage revenue streams, such as capacity market trading or wholesale tariff arbitrage, by propping up the grid so it can accommodate more renewable generation.
The need for these kinds of services could grow with an expansion in renewable energy generating capacity. But adding that capacity relies on having a robust grid.
The Australian electricity network has been singled out for criticism precisely because of National Electricity Code Administrator rules on frequency control. Observers say that the NECA rules for frequency control are lax compared to those in other markets.
That could make it difficult to maintain grid control in the face of rising renewable energy generation, GTM revealed last year.
If Tesla’s big battery can help bring frequency control back into line, though, then it might be easier to add more wind and solar into the equation ? boosting the business case for more batteries, even if FCAS is off the table.
China’s National Development and Reform Commission (NDRC), the Ministry of Finance (MOF) and the National Energy Administration (NEA) jointly released its official ≫2018 Solar PV Power Generation Notice≪. According to consultancy Asia Europe Clean Energy (Solar) Advisory Co. Ltd. (AECEA), DG projects are subject to a cap of 10 GW in 2018. ≫All DG projects which managed to achieve grid connection until May 31st, will be eligible to enjoy FITs granted by the central government.≪ DG projects which are not recognized by the central government shall seek financial support from respective local governments. AECEA estimates, that approximately 9 GW of DG projects were installed between January and April 2018 (plus approximately 2 GW of utility-scale) and ≫highly likely by the end of May, the 10 GW cap has already been realized.≪
Furthermore, FITs were uniformly reduced by CNY 0.05/kWh ($0.007) and the on-grid tariffs for resource zone 1, 2, and 3 were adjusted to CNY 0.5 / 0.6 / 0.7 per kilowatthour, respectively. The next FIT reduction is anticipated to be between 12 to 15 percent effective Jan 1, 2019, says ACEA director Frank Haugwitz.
Last year, NEA announced a 13.9 GW utility-scale project target for 2018. However, the latest NEA notice stipulates that this target has been abolished and has instructed provinces to stop projects seeking 2018 FITs in any form. ACEA: ≫Support of utility-scale projects in future is subject to further notice.≪ Subsidies for village-type poverty alleviation projects (up to 0.5 MW) remained unchanged and are for resource zone 1, 2, and 3; CNY 0.65 / 0.75 / 0.85 per kilowatt-hour, respectively.
In AECEA’s view 2018 is a transition year for the Chinese PV Market. The consultancy has not only lowered its forecast for 2018 from 40 to 45 GW to 30 to 35 GW, but as well lowered its forecast for the remaining years of the 13th Five-Year-Plan period (2016-2020) to 20 to 25 GW annually. According to solar energy consultant Frank Haugwitz, at the end of 2020, ≫China could be home to approximately 200 to 215 GW of total installed solar PV power generation capacity which would be in line with a 200 GW target, although not officially confirmed, however proposed by China’s National RE Development Center in the context of China’s Renewable Energy Roadmap in November 2017.≪
大林組グループは、2011年2月に策定した中長期環境ビジョン「Obayashi Green Vision 2050」において、「2050年のあるべき社会像」を、「低炭素」「循環」「自然共生」に「安全・安心」を加えた「3＋1社会」として捉え、その実現に向けた目標・計画を定め事業活動を行っています。今後も同ビジョンに寄与する再生可能エネルギー事業のさらなる拡大を図るとともに、持続可能な社会の実現に貢献していきます。
追加建設予定のメガソーラーは最大出力が200MW（20万kW）となる予定。蓄電池システムの仕様は公開していないが、風力発電所とメガソーラーが発電した電力を蓄電池システムに一時充電することで、ほとんどすべての電力を無駄なく売電できるようになると考えられる。CWP Renewablesはメガソーラーと蓄電池システムを追加した施設全体を「Sapphire Renewable Energy Hub」と呼んでいる。
両発電所合計の年間発電量は約14万9740MWhを見込む。これは、ベトナムの一般家庭約7万9353世帯分に相当し、約4万9863t-CO2の温室効果ガスが削減できる見通し。ベトナムの複合企業Thanh Thanh Cong Group傘下のGia Lai Hydropower Joint Stock CompanyおよびTTC-Duc Hue Long An Power Joint Stock Companyから受注した。
優先給電ルールにおいて火力発電や揚水発電（電源I, II, III）による調整の次に「連系線を活用した九州地区外への供給」が行われることになっている。しかし、2018年5月3日の12時台のように太陽光発電の割合が80%を超えるような状況でも連系線の活用は行われておらず、逆に地区外への送電量が減少している（図２）。これは、太陽光発電のピーク時に連系線を積極的に活用している四国電力の運用（図４）とは好対照である。
Repairs of the pump station
& installation of an additional drainage pump
Installation of a 1000kVA emergency generator
In case of electric power outage, two drainage pumps can be operated
simultaneously for 72 hours by the emergency generator.