Just in from The Age
AGL Energy is to set up what it says will be the
world's largest "virtual power plant", using 1000 connected
batteries installed in homes and businesses in South Australia to ease bottlenecks on the grid and help reduce price spikes.
Federal government funding will support the
$20 million demonstration project, which will provide participants with discounted batteries supplied by
AGL's partner Sunverge.
The solar-powered batteries that make up the power plant will be able to store 7 megawatt-hours of energy, with output equivalent to a 5 megawatt solar plant. The project is intended to help customers manage their energy bills while at the same time contributing to the
stability of the grid.
"We believe it will demonstrate alternative ways to manage peaks in energy demand, contributing to grid stability and supporting the
higher penetration of intermittent, renewable generation on the grid," said AGL
managing director Andy Vesey in Adelaide, the city at the heart of South Australia's energy crisis.
Some $5 million of the project costs will be provided by the
Australian Renewable Energy Agency, subject to conditions.
Experts in the industry have been
forecasting that the concept of a "virtual power plant" would soon hit Australia's shares in the wake ofpilot projects overseas, including one in Ontario by Canadian community energy company PowerStream.
The concept underscores the value of staying connected to the grid so
households can send surplus power generated by their solar panels and storied in batteries back into the grid when needed.
ARENA head Ivor Frischknecht said the government wanted to encourage others in the private sector to also consider how they could use renewable energy technology to deliver electricity "around-the-clock" in South Australia, where the
intermittent nature of wind generation has underscored the volatility of wholesale power prices.
He said the project could point to solutions to the "challenges" in South Australia's grid and reduce the risk of power shocks. It could also help ease constraints in the grid,
displace expensive gas-fired power and add capacity to complement the interconnector with Victoria during peak demand periods.
The project is to be rolled out in three phases over 18 months. Customers taking part will be able to buy a discounted Sunverge battery system as part of the demonstration. AGL said that for those that generate enough surplus power, the
payback period should be just seven years.
