Higher power prices draw new market entrants

Dramatic increases to household electricity bills across Australia are behind a German battery group’s entry into the fledgling Australian household energy storage market.

German industrialist Deutsche Energieversorgung will introduce its lithium-based SENEC.Home energy storage system through Perth-based Senec-Australia. The company said it identified the market opening after a “torturous year” for Australian households and businesses heavily impacted by spiraling electricity tariffs.

Managing Director Ian Parkinson said price concerns were particularly pertinent in three states — NSW, South Australia and Western Australia.

“Battery energy storage using existing or new domestic solar panel installations has the potential to revolutionise the Australian power market,” Parkinson said.

“With surging power prices and increased concerns over reliability and supply impacting millions of Australians, households and businesses are desperately searching for ways to increase or improve the security and price of energy delivery into their homes.

“From our perspective, we see a convergence in 2017 of three factors in the Australian household power market which will see a trend to increased reliance on solar-based battery storage for household electricity.

“These factors include the emergence of lithium-based batteries proving their worth after initial teething issues globally; the successful crossing of lithium technology for the first time into affordable, high-performance domestic energy storage applications using solar panels; and increasing consumer dissent about price, security of supply and the original source of electricity — be it fossil fuels, gas or renewables.

“We have an emerging domestic power market scenario in Australia where households want greater control of their electricity, particularly to better optimise usage and tariff options around peak times and off-peak periods, and to essentially move most of their reliance on power from a grid network to their own batteries.

“Some battery-sourced electricity systems now have the capability to supply up to 80% of a household’s regular needs.

“That’s a game changer in a market which has embraced in the past two decades solar power in one of the sunniest countries in the world, but which now recognises the opportunity to pair solar power with energy storage systems.

“Senec-Australia is targeting this unique market window. We believe our and other like systems will have strong market appeal after the crippling events across at least three state power markets over 2016 left a high level of disillusionment amid domestic consumers with Australia’s historic power generation and distribution infrastructure,” he said.

Parkinson said the grid market scenarios fuelling consumer anger spoke for themselves:

• NSW: More than one million households are reportedly paying more for electricity than any other developed nation, with 1 July price rises for electricity surging 12% or adding $170 to the average annual bill, with some increases doubling that figure.
• SA: Australia’s highest paying electricity market saw coal exit the state during 2016 as a baseload feedstock and was further spooked by an extraordinary July spike in wholesale electricity prices from an average of $60/MWh to $9000/MWh, followed by a weather-led statewide blackout in September which tripped the interconnector with Victoria, complicating inadequate backup systems.
• WA: Average post-1 July prices for power rose 12.6% across all tariffs, with larger businesses suffering hits of up to 22% higher fees.

Need for greater off-grid independence

Parkinson said the national launch of the Senec home lithium battery for household solar systems could help nullify the above impacts and bring a level of greater independence to householders from rising electricity costs.

The Australian Senec range will offer 5, 7.5 and 10 kWh models, has a design life of up to 20 years on the rechargeable batteries, has met all Australian standards, features a protective shutdown system in the event of any incident and is modularised to enable owners to ‘add in’ further capacity.

It is also designed to be retrofitted onto any existing solar system and incorporates a backup feature which continues to supply electricity to a chosen circuit in the event of a broader grid power failure.