Thanks Oz. Qld is a losers market for coal and solar. Both are...

Thanks Oz.

Qld is a losers market for coal and solar. Both are sitting ducks: coal wants to run continually and solar is predictably tied to when the sun shines and competes with price-insensitive household roof-tops. Both are price takers. Sure, solar can time-shift output with a battery or pumped hydro from time intervals with low prices, but that is true of the storage of any form of generation and is an advantage likely to be competed away except for early adopters in early years. Solar + battery or PH becomes the base case and will earn market returns.

Wind is different. Intermittent wind and late night wind have nil value and currently spill. Add a battery and nil can be sold at peak and intermittent wind 'firmed'. The largest margin enhancement available in the market is in adding a battery to windfarms.

According to this framework, GNX's Kidston will earn market returns as a stand alone unit, the benefits of its WF overwhelmed by the solar+PH economics. If its despatch was in IFN's hands, the control room will have many optional sources to bid into the market with. Further, with multiple batteries in different locations, it could both time-shift and location-shift electricity.The gains are in the orchestration.

Hope this makes sense.

Ash