Credit: Red Zeppelin
OptiGrid, an Australian battery optimisation and trading intelligence platform built for the National Electricity Market (NEM), said the NEM wholesale market settings review highlights weaknesses in derivatives markets and the move from bulk energy towards shaping and firming capacity as states and territories consider whether to step outside the national market.
The following quotes are attributed to Sahand Karimi, CEO of OptiGrid.
On price formation shifting to batteries
“The NEM Review confirms what the market is already seeing. As large-scale batteries grow, electricity prices are being increasingly influenced by storage opportunity costs and how effectively they are optimised through their bidding.”
On the derivatives market and the tenor gap
“The NEM Review is unusually frank about the derivatives market falling behind the physical transition. Batteries are being built into a market that still struggles to price long-term flexibility properly.”
On the Electricity Services Entry Mechanism (ESEM)
“The ESEM will succeed if batteries are operated to deliver energy, shaping and firming when the system needs them. Embedding the ESEM in legislation makes it enduring, but reliability outcomes still depend on procurement settings and the performance of an asset.”
On where value is shifting in the NEM
“What the NEM Review really shows is that battery value is shifting beyond megawatts alone and towards how well assets are co-ordinated and optimised to deliver shaping and firming when the system needs them.”
On Queensland opting out
“Queensland has the highest solar penetration in the NEM and opting out of the market risks delaying the benefits that storage can deliver during extreme price swings.”
“Investors value predictability more than perfection and this will introduce uncertainty that Queensland doesn’t need as coal exits accelerate.”
About OptiGrid
OptiGrid is an Australian battery optimisation and trading intelligence platform purpose-built for the complexities of the National Electricity Market (NEM). Trusted by asset owners, developers and operators, OptiGrid gives them the confidence to invest in and operate batteries in ways that maximise value capture and accelerate Australia’s clean energy future.
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