Spanish renewables group, FRV, has suggested the introduction of a form of banding, or a “multiplier,” to encourage the development of energy storage.
FRV suggests a multiplier could be applied to encourage generation when and where it is needed most, such as during peak demand and shoulder periods.
This would address concerns that much wind energy, for instance, is being delivered in off peak periods.
FRV says such a multiplier would benefit any project or technology that could deliver energy at times of high demand.
“If structured correctly it has great potential to ‘pull’ the implementation of storage in conjunctions with a range of renewable technologies, including wind,” it writes in a submission to the Renewable Energy Target review panel.
“This has considerable financial benefit through avoided network investment and avoided peak and intermediate generation requirements.”
Multipliers are already used in countries like the UK, where Australia’s Carnegie Wave Energy expects to get five certificates for every MWh of electricity produced from a proposed wave energy installation.
Such as mechanism would, of course, have the added benefit to the likes of FRV of favouring solar, which delivers mostly in shoulder and peak periods.
FRV believes that, given the anticipated cost falls in solar, around 40 per cent of the Renewable Energy Target could come from solar farms. FRV also argues that solar can be installed anywhere where there is a load or acceptable grid connection, thereby helping to reduce transmission and distribution losses, which can amount to 10 per cent or more.
It notes that distributed energy can defer or remove the need for grid upgrades. Given that the largest single driver of retail electricity prices increases has been network upgrades, this is an important contribution.
Top image: La Olmeda solar farm in Spain, via FRV
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