The switch to five minute settlements that was introduce in the final quarter of 2021 has already delivered dividends – albeit small at this stage – to the operators of some big batteries in Australia’s main grid.
The switch to 5MS was pushed for by big industrial users who were sick of what they saw as the gaming of the previous arrangements, a 30 minute settlement period, which often saw thermal generators flood the market after a what were often seen as artificially high price spikes early in the period.
It was fought tooth and nail by the owners of the fossil fuel generators, who feared losing a main revenue source, but was also seen as essential to encourage, and properly reward fast moving and flexible technologies such as battery storage, and demand response. And this has already been the case.
As RenewEconomy reported just over a week ago, the switch to 5MS has seen…
Big batteries score early gains in switch to five-minute settlement
