Why Battery Technology will force Power Companies to embrace domestic supply
Around Australia and parts of the world like the USA, some governments and especially many large scale power utilities, are pursuing a campaign to prevent domestic solar from being fed back into (sold to) the grid. I’m assuming that the (fundamentally flawed) thinking is that by denying additional energy production points, they’ll prop up or sustain their own margins and profits. Which was probably accurate until the 2015 International Year of Battery Technology got into its groove
The one core challenge with renewable energy sources such as wind, solar and tidal energy is that it is a use it or lose it kind of generation. Unlike gas or coal or oil, wherein the energy source is stored as a fuel that is then burnt in an engine of sorts to produce electricity when needed, renewable production is typically required to be utilised pretty well straight away or it vanishes into the ether.
In that light, power utility companies know that if they can prevent renewables being connected to the grid, excess production of renewable energy (unneeded by the provider) will therefore go to waste, and help prop up prices for low demand periods. In high demand times such as when it is particularly hot, customers will be forced to pay significantly more for their energy because excess domestic supply in the form of roof mounted solar panels, will not be available to ‘flatten out’ the demand spike. In South Australia, the abundance of roof top solar has proven to flatten the demand on the overall grid, adding to stability whilst lowering costs of supply to everyone as this article shows
So in that light it would make sense for energy utilities to do whatever they can to stop additional renewable capacity being added to the grid. In Queensland and across the US the practise seems almost a fait accompli for any energy utility using last century’s technology like coal. Things seem no less bitter and short-sighted in the US and I say short-sighted because unfortunately the ‘deny access to the grid’ approach is now flawed, with the rise of Battery Technology for storage upon us.
Rather than try and prevent access of renewable energy producers selling into the grid, power companies ought to be encouraging the method under managed guidelines. Because here’s the main problem – the available large scale storage battery technology is getting some serious development as this story shows and this means one thing for the future of utilities: if you deny domestic supply points a chance to access the grid and sell excess, they’ll by-pass the grid completely and store their energy which they’ll then make available for free. In other words, denying the domestic supply model will push the domestic supply to become a viable alternative and accelerate the existing utility businss model to a fast demise.
The International Year of Battery Technology has just kicked off. Like the cost of solar cells and data storage, the acceleration will see smaller units at ever cheaper cost expand from small sites at commercial buildings, to residential housing estates and then into individual domestic supply options – a model that remote homes have proven successful for almost four decades. At the point at which scale and cost becomes available to urban domestic sites, energy utilities can kiss their business goodbye
Need a high quality speaker to wow your audience, jolt your Board or provoke the thinking of your senior management team? Contact Marcus Barber today
Sometimes the words come to you readily and this small piece has me thinking about what I’d like to say at a time when maybe I’ve lost the cognitive ability to do so Before I was Me Before I was Me I used to be fit, and even quite smart; We’d chat about love,…Read More >
I was doing it well before then and there’s clips of me online going back as far as 2010 or so, railing against the idea of human resources as a label and the insistence by HR managers or CEOs that only people who work ‘in the office’ are going to be productive. It Is A…Read More >
Like lab grown meats, Vertical Farming is going to be part of the future of food. For now it might be best to compare them to small scale battery storage on the electrical grid that can help balance out spikes of demand in the system and provide an output directly where needed. Eventually (like…Read More >
In rental and lease markets it’s fair to say that for the best part of three decades, the landlords have been the price setters. The rules around negative gearing in domestic supply enable sizeable portfolios. Demand in office spaces in central suburbs has been consistently tight. And now, finally, CFO’s have become aware of the…Read More >
With Australia having just about wrestled Covid19 to the ground (NSW remains a bit of an issue) there’s now surging demand for PPE in the USA. The Covid19 virus is tracking toward an exponential increase and PPE Manufacturers should start looking for supply opportunities Sadly in the USA over the past week, they are adding…Read More >
The Mechanical, Psychological, and Biological Interventions of a Pandemic With Johnson and Johnson also pausing it’s #Covid19 #vaccine trial, it is becoming clearer to more of the public, that the long steady path to a vaccine is not something that can be rushed for anyone’s political agenda or preferred view of the world. We’re learning…Read More >
It seems that one way or another, Victoria is going to pop out of #Lockdown. Probably not in the way we would have hoped. And so for everyone pushing for #AfterLockdown in Victoria and for the wider society, there are two questions you must confront: One – ‘What do you feel is an acceptable level…Read More >
No, it’s not easy. Most of the challenges come down to our expectations – are they valid based on the assumptions you have made about your future? Those assumptions are based on the information you have available to you. We gather information, make an assessment of meaning, which leads us to make assumptions for an…Read More >
A thought on the ‘Why should I be in lock-down in my suburb, it’s not fair that we have to do it and no one else has to, my hair’s a mess I need to sell coffees and pizza’ crowd – an explanation you might appreciate You’ve been asked to go back into lock-down…Read More >
Visions are forward looking statement, but good ones, REALLY good ones have key elements 1. They are things you want but do NOT have 2. Are as long or as short as they need to be 3. Are by the people they are for 4. Are for the people they are by 5.Offer stability in…Read More >