The definitive guide to building profitable commercial & industrial battery and VPP projects. Specifically written for battery sellers, VPP-builders and investors, our White Paper aims to inform market entry and sales strategy via a deep-dive into battery project economics.
To reach our findings, we've modelled 280 hypothetical battery projects using our VIPPY™ engine, which mimics the bid-logic of a real-world battery. It is the culmination of months of effort from the New Energy Ventures team, and is peer reviewed by some of the most respected in the industry.
25%
of network tariffs are currently viable
We found that building a value stack with solid behind-the-meter revenue, plus strong market upside potential is key to creating more valuable and bankable projects. The White Paper will help you craft a market entry strategy, so you can confidently enter the right market, at the right time, with the right offering.
*These three ranked highest, but other regions offer viable battery projects opportunities as well. Ranking as modelled for the following value stack: Demand reduction + Spot price arbitrage + FCAS. See report for full assumptions.
Findings snapshot
To sell C&I batteries, you need to find prospects within certain network regions, on certain tariffs, with certain load profiles.
Our modelling found that only 25% of network tariffs in the NEM are currently viable for C&I batteries, based on behind-the-meter bill savings alone*. The White Paper gives you the market intelligence you'll need to find the best prospects, allowing you to make sales at lower cost.
*Behind the meter bill savings modellined: Combined value from Demand reduction + ToU tariff arbitrage + solar self-consumption
Adding VPP revenues in the mix can create battery projects that are bigger, more profitable, in more locations.
Arbitraging the energy spot market and providing FCAS services can turbocharge project economics, but adds delivery complexity and exposure. The White Paper models potential revenues from these markets, quantifies risks, and offers a practical 'starters guide' for those seeking to access such advanced revenue streams .
Monthly revenue
In 2020, the best locations for C&I battery deployments are regional Qld, SA, Tas & regional NSW*
Contributors
James Allston
Lead Author | NEV MD
Michael Jurasovic
Lead Modeller (VIPPYTM)
Chris Cooper
Snr Editor & Go-to-market
Magdalen Urrutia
Supporting editor
Authors
New Energy Ventures
Expert Reviewers
Independent, from industry
Phil Blythe
Founder & Director, Greensync
David Leitch
Chief market analyst,
ITK Services
Jonathan Prendergast
Technical Director, Business Renewables Centre Aus.
Matt Grover
Strategy & Market Development, AMS
"One of the best reports I have ever read, particularly as this is such a complex topic."
Jonathan Prendergast, Business Renewables Centre Australia
Understand your opportunities, whoever you are:
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Battery sellers
Solar & battery retailers, Battery OEMs, Energy Consultants.
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VPP builders
Aggregators, Energy retailers,
Network businesses.
Buyers & investors
C&I businesses,
Third-party investors
