Report outlines potential for consumer storage in New Zealand

A report published by New Zealand national grid operator Transpower offers a mixed outlook for energy storage in the south pacific nation.
Photo: Joan Campderrós-i-Canas

For New Zealand, energy storage could provide valuable services to electricity consumers. A new report from Transpower states that batteries offer the greatest value when located as close to the end electricity user as possible.

The report, Battery storage in New Zealand, outlines six key findings regarding the country’s potential for energy storage, chief among which is that when placed close to the consumer in an electricity supply chain, batteries can provide a range of services both to the end user and upstream to the electricity network.

Other findings include that residential or community scale storage is expected to become economical after 2020. This is thanks to growth in rooftop PV and a decline in thermal power generation, as well as falling costs of batteries as increased production brings economies of scale. New Zealand’s reliance on already flexible hydropower means that grid level storage is not expected to be economical, for the next five years at least, although Transpower does expect them to become viable, and to be a ‘game changer’ for New Zealand’s energy system in the long term.

“Battery projects at lower voltage distribution substations, and at a consumer level are forecast to become economic in the next few years, due to the declining cost of battery systems,” stated Transpower General Manager of Grid Development, Stephen Jay. “Over time, we believe they will also become economic for the high voltage transmission grid, and this will then provide battery resilience across the whole supply chain.”

State owned grid operator Transpower compiled the report based on a series of case studies where storage was integrated at various points in the energy system. The authors also noted that new uses and value for storage could be developed through regulations and market structures for the technology.

“Presently, battery owners are unlikely to be able to unlock the value of their battery until the appropriate market pricing and payment structures are available,” continues Jay. “We believe that there is real potential and benefits from batteries for New Zealand consumers, and we will support industry changes, sucha as market and pricing reforms that allow battery owners to maximize their value”.

According to another report from Transpower, New Zealand’s installed solar PV capacity had grown to 37 MW with generation from residential, commercial and industrial sites by April 2016. UK-based Centre on Innovation and Energy Demand (CIED) recently reported that the country’s installed solar power reached 52 MW (45 MW of which from residential installations) as of the end of April 2017, citing data from Allan Miller of the GREEN Grid research programme of the University of Canterbury, New Zealand. This capacity currently covers only 0.1% of the country power demand.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].

Written by

Comments

New Zealand identifies 11 GW solar potential – powerplanetrecorder
Jun 14, 2019

[…] evening hours and warned solar installations without storage would only amplify the effect. The grid operator has advised the utilization of energy storage in the form of electric vehicle batteries, residential and community storage systems, as well […]

Selandia Baru mengidentifikasi 11 GW potensi matahari – Janaloka
Feb 13, 2019

[…] hari dan memperingatkan instalasi surya tanpa baterai penyimpanan hanya akan memperbesar efeknya. Operator jaringan telah menyarankan pemanfaatan penyimpanan energi dalam bentuk baterai kendaraan listrik, sistem penyimpanan perumahan dan masyarakat, serta solusi […]

» New Zealand identifies 11 GW solar potential – pv magazine InternationalSolar Equipment Installer
Feb 11, 2019

[…] early evening hours and warned solar installations without storage would only amplify the effect. The grid operator has advised the utilization of energy storage in the form of electric vehicle batteries, residential and community storage systems, as well as […]