Monash’s Grid Innovation Hub gets gov’t funding for study on storage market design

The funding is over $345,000 (A$495,000).

The Australian Government has granted more than $345,000 (A$495,000) funding to the Grid Innovation Hub at the Monash Energy Institute of Monash University to support its study on the integration of storage into energy markets.

In a statement, the Australian Renewable Energy Agency (ARENA) said the researchers at the Grid Innovation Hub will be conducting a desktop study “to explore alternative market designs that could better support energy storage technologies.”

They will also be crafting efficient incentives for storage operators to enable clear investment signals for the sector. This will include the assessment of how day-ahead markets combined with the balancing markets could be more fit for a market transitioning to more bulk storage.

ARENA CEO Darren Miller said exploring different energy market designs for storage would lead to changes needed for an efficient transformation of Australia’s electricity system in line with the net-zero targets.

“Further investment in storage solutions such as pumped hydro, large and small-scale batteries is vital to continue Australia’s uptake of variable renewable energy into the grid,” Miller said. “As traditional generation retires, we need storage to play a bigger role in firming up and balancing our electricity system.”

READ MORE: ARENA mandate expanded to cover energy efficiency, electrification

The agency said the study, which has a total cost of A$1.18m, aims to inform policymakers and market participants instead of formulating prescriptive policy recommendations. It will also look into market structures for new system services such as inertia, and study the risk of market manipulation by storage assets owners.

The study could also help outline potential market design solutions and come up with changes that could provide benefits such as an improved valuation of energy storage services, increased investment in storage in the National Electricity Marke, reducing barriers to a high share of renewable energy, and improve grid reliability.

$1 = A$1.43