An Economic Case for Batteries for Energy Storage in Australia

Question: Describe an Economic Case for Batteries for Energy Storage in Australia? Answer: Introduction It has been identified that Australia has untapped renewable energy resources, sparse population and peaky demand profile. Therefore, energy department of Australia understands that continuing in generating path of traditional power and augmentation of system will be more expensive. [5] argued that storage industry or sector of Australia need to increase and achieve the best way in terms of growing. This report mainly discussed the economic case for batteries for energy storage that allows proponents of storage. Apart from that, this report considers the broader understanding of energy industry of Australia such as demand for energy storage in Australia, economic case for meet the demand for batteries for energy storage, etc. 1. Energy Storage sector of Australia with reference to other countries In Australia, supply of electricity divided into four different ways such as transmission, generation, retail and distribution, whereas other countries supply their electricity in three different ways such as generation, transmission and distribution. However, majority of country in this world focus on providing electricity supply through coal or other related materials, but Australia increase their resources of supplying power all part of the country via renewable resources such as solar, hydro, wind, etc. [2] opined that majority of countries generated their electricity through the burning fossils such as oil, gas, coal, etc. Australia is also one of the countries that used burning fossils for supply of power at large scale power stations conventionally. Figure 1: Forecast of Commercial market for energy storage in Australia (Source: [8]) According to the government of Australia, the generators of power supply such as wind, solar, hydro and the fuel of Australia are located a long way. Therefore, moving of these electricity resources across the long distance government has to invest more capital for transmission of network in order to deliver the electricity in the demand centres. In order to reduce this limitation, government of Australia implement smaller scale distribution network in terms of supplying energy to the residential, commercial as well as industrials. Energy of electric is not able to store in the network [11]. Therefore, Australia uses batteries for energy storage. Apart from that, using pipes, government of Australia stored gas or water energy resources in the network. In Australia, storage of energy for the electricity consumption was successfully admired using the chemical batteries. For the large scale electricity generation as well as distribution or for transition, it has been understand that batteries are the more economical efficient in terms of generating energy or storing energy when it was consumed. [9] stated that development of chemical batteries for storing energy during electricity consumption rather than other building other storage system. The upfront cost for building batteries based on chemical energy storage system is much lower. Apart from that, batteries lose less electricity during converting electrical energy into the form of storable. The energy investment group develop the solar system that considered as worlds largest energy storage resources. In order to develop the battery storage project Australia invests more than $2 million, whereas other countries such as USA, Europe, Netherlands, invest much less rather than Austral ia. 2. Current Situation and Future Scenario of Energy Storing Project of Australia Current Situation Australian Energy Storage constructed the worlds largest battery bank. In Australia, the energy storage constructor facilitate more than 400 MWH energy storage that indicates it provide more than 100 MW (Mega Watt) using the chemical lithium battery technology. For the battery storage project, Australia invests more capital rather than other countries in this world. From the energy storage preview report it has been understand that one Australian Company name ASX wholly owned the business power [6]. However, the company working with the partnership of Rio-Tinto serves the remote bauxite operation in Queensland and expand the power during electricity consumption to 6.7 MW instead of 1.7 MW. Figure 2: Component of Electricity Grid (Source: [2]) According to the CEO and director of MPower energy saving through chemical battery tags the high market growth. The households of Australia are able to bypass their electricity retailers [1]. Soon the people of Australia buy electricity power from open market via the new technology that build based on chemical battery. According to the people of Australia, Canberra based company introduced the new technology that allowed people in storing energy and converting it for their daily uses. Apart from that, it has been identified that the Canberra based company installed battery storage in six solar homes around the region of Canberra and pilot their new developed technology. However, for this project, the Renewable Energy Agency of Australia contributed more than $445000 for the ongoing project of battery energy storage. Currently, more than 900000 projects were undertaken by the different companies in Australia [3]. The companies of battery based energy storage project such as Reposit Power said that they are the worlds first energy storage program in deriving the seat of energy storage. Future Scenario The Renewable Energy Agency of Australia evaluates the development of their energy storing system via simulation of their scenario baseline in terms of development of energy storing system during energy consumption in Australia. The baseline of simulation demonstrates that energy storing system via chemical based battery reduce the usage of fuel and energy consumption. Introducing the new technology, government of Australia can produce the low renewable energy penetration. The government of Australia was undertaken their energy storage project based on battery in 2011 and they continue their development project up to 2030. Apart from that, electric generation infrastructure of Australia especially the purpose of project of energy saving takes the necessity steps that describes the future economy of Australia. Australian greenhouse gas has a potential impact in the electricity generation. 3. Process of Life Cycle Management application for Energy Storage Readily Implementation Remote Electricity System and Fringe System: In order to involve the battery storage system for storing energy, remote system has to apply because the process or methods of remote system fully depend on the capacity of electrical generation. However, the local electrical generation was supplied by the diesel plants. However, it is a smaller system. The energy storage department of Australia need to move their energy saving life cycle towards renewable energy system. In order to achieve larger electricity grid, energy resource department need to apply the process of linking voltage transmission network. Fringe system hang of the lines of long signal network in electricity supply and maintain the voltage regulations during the times of difficulties [12]. Apart from that, limited infrastructure increased the vial costs in terms of strengthening the connections in urban as well as rural standards. Network Support: In Australia, the network of electricity serves the inherent market that considers high cost. Due to sparse population of Australia, demands of electricity growth higher and higher. Therefore, the peak demand level growth of the people of Australia increases each year in order to accumulating the electricity storing devices such as battery. In order to maintain the consuming devices of electricity, government of Australia has to apply the demand side participation. It will allow in promoting the technology of consumption of power. Apart from that, cost reflective pricing also has to apply in order to generate the possibility. According to the energy consumptions and changing towards the impact of peak demand, need to reduce the contribution of peak demand [7]. It will help in successful involvement of cost effective pricing in terms of generating possibility. Market Participation: In order to store the electricity energy, Australia has to comprise the market participation. National Electricity Market helps in starting the wholesaling market of the supply of storage energy to the end user or the retailers. Apart from that, operation of NEM has interconnection with the large global sector of energy storage and power system. Grid Stability: In order to apply the life cycle management for storing energy, Australia has to changes the supply demand in their AC electricity grid. They need to observe the frequency in each grid and keep the stability of each grid. However, through small scale injection and the rapid injections or withdrawal the lead as well as generation, Australia can store their energy in battery [4]. Moreover, the frequency control service provides the category of ancillary service that will allow in specifying market design. Residential Storage System: For applying life cycle management in energy storing system, Australia has to adopt distributed renewable generations in their residential households. This uptake can helps in concentrating the overall energy storing project more than fifteen years with the noticeable spikes [10]. Apart from that, involvement of residential storage system, help in avoiding incentives of power bills that live more virtuously. Challenges In order to apple the life cycle management process in energy storing system, Australia may face several challenges such as technical challenges, economical challenges, cultural challenges, etc. Technical Challenges: The major challenges that faced during the implementation of life cycle management process are consistent of control interface. Majority of storage vendor supplied their own storage management system that may risk for ongoing project of energy storage. For the utility battery, there were no standard used by the vendors in the new type of network asset. Coordination and infrastructure control for large network of storage will be limited during execution. Economical Challenges: Disaggregated structure of industry in Australian electricity can capture by one single party of all storage benefits. Therefore, value of this service cannot easily captured by the government. Moreover, through the above life cycle management system, financial incentives of electricity supply are not able to align properly. Energy storage insulates the deployment of electricity retailers such as peak price that convert the financial hedges. This type of hedges represents the development of market and provides the cheaper option rather than storage based hedges. Cultural Challenges: In order to develop the energy storage through chemical battery, majority of engineers provides unfamiliar technology in centralisation of AC system. Apart from that, engineers of developing technology for energy storage is unproven that decades complicated energy storing method and creates wide range of networks problems. However, lack of renewable energy vendor as well as storage vendors create dialogue for hybrid system and misunderstood the future growth opportunities, possibilities and requirements in terms of successful storage commercialisation. Use of UNEP Life Cycle Management process details Set Policies: In order to use the UNEP Life Cycle Management process within the core reading, need to set the policies of LCM. LCM policies are the important rings that works at all level of an organisation. Commitment and internal readiness of LCM helps in continuous improvements in the UNEP life cycle management process for batteries for energy storage. Organize: In order to make the project successful, renewable energy agency need to involve with initiative. It provides higher ambition and participates with the process properly. Survey: In order to involve UNEP Life Cycle Management, Australia has to survey about the available knowledge and environmental impacts of energy storage. For example, need to survey the reports of environmental and corporate. Set Goals: For involving the UNEP Life Cycle Management process within the project of Batteries for energy storage, need to set goals firsts based on region. Renewable Energy Agency of Australia needs to provide effort and determine the goal for the improvement pursuing project. 4. Energy Storage for Addressing Issues There are several types of energy storage that allows in storing energy such as chemical energy storage, electrical energy storage, electrochemical energy storage, thermal energy storage, mechanical energy storage, etc. However, according to the issues of current situation in energy storage of Australia, electrochemical energy storage will be fit. It is the best mechanism of storing energy. There are several devices involves such as battery, fuel cell, etc that convert the chemical energy into electricity. The device named battery has huge capacity of storage and density of charge. Apart from that, energy density of battery is much better rather than other devices. Voltage efficiency of battery is also useful and the ratio of output of a battery is much more efficient rather than other device. Electrochemical energy storage devices such as Battery allow in using two types of batteries such as non rechargeable batteries and the chargeable batteries. Chargeable batteries have large storage capacity and have the capability of recharge. The electro code of rechargeable batteries is able to precede the reactions in both directions. It facilitates to provide free energy in the non spontaneous direction that stored wide range of energy and supply energy during power consumption. Therefore, using electrochemical energy storage system, Australia is able to reduce the problems of energy consumption as well the capital investment for acquiring other resources instead of coal, fuel, etc. Fuel cell is also an important part of electrochemical energy storage. Fuel cell converts chemical energy into electricity. Using fuel cell, Australia can produce electrical energy from wind, water, etc. Different types of fuel cell such as electrolyte, cathode, anode, etc provides lot of benefits in producing energy and storing energy with less economy. Therefore, it will be the important method of mitigating issues for using renewable energy storage. Conclusion This report is analysing the current situation of Australia in energy storage industry. The situation of Australia is appropriate for the adoption of broad scale of alternatives ways of energy including batteries for energy storage. Wholesale electricity market also has to apply because it operates the western regions of Australia where people love more than 2 million. Therefore, use of natural resources such as wind, solar, hydro instead of fuel, gas, oil will allows Australia in developing a scrap electrical generation capacity. The policy makers of Australia are also serious about their cost of greenhouse gas. It helps in increasing the needs of Australian economy as well as the capacity of storing energy from the alternative sources. Reference List [1] W. Steinmann, 'The CHEST (Compressed Heat Energy STorage) concept for facility scale thermo mechanical energy storage', Energy, vol. 69, pp. 543-552, 2014. [2] J. Laird, 'Storage solutions', Renewable Energy Focus, vol. 13, no. 3, pp. 42-46, 2012. [3] N. Chopra and S. Fiechter, 'Energy conversion and storage', Nanomaterials and Energy, vol. 1, no. 2, pp. 63-64, 2012. [4] N. Amin, M. Belusko, F. Bruno and M. 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