❓ Dr. Thomas questions the contracts between AEMO and Synergy for battery storage, particularly regarding cost recovery and pricing. The answer confirms a contract exists but keeps details confidential, citing market rules for pricing and revenue generation.
AnsweredQoN 736Legislative Council
QuestionView source ↗
ENERGY — BATTERY
STORAGE CONTRACTS
736. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to the minister's
answer to question without notice 730 asked on 13 June on the construction of
big battery storage in Western Australia and contracts for their use.
(1) Does the
Australian Energy Market Operator have any contract with Synergy for the supply
of energy from its Kwinana 1 or Collie big batteries?
(2) If yes to (1), what are those
contracts?
(3) If no to (1),
how will the supply of electricity from Kwinana 1 and Collie big batteries be
managed when it is needed?
(4) Will AEMO
simply purchase electricity from Kwinana 1 and Collie big batteries on a spot
market; and, if so, what is the anticipated price per megawatt hour AEMO will
have to pay Synergy for that energy?
(5) How will
Synergy recover the over $2 billion construction cost of the Kwinana 1 and
Collie big batteries?
STORAGE CONTRACTS
736. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to the minister's
answer to question without notice 730 asked on 13 June on the construction of
big battery storage in Western Australia and contracts for their use.
(1) Does the
Australian Energy Market Operator have any contract with Synergy for the supply
of energy from its Kwinana 1 or Collie big batteries?
(2) If yes to (1), what are those
contracts?
(3) If no to (1),
how will the supply of electricity from Kwinana 1 and Collie big batteries be
managed when it is needed?
(4) Will AEMO
simply purchase electricity from Kwinana 1 and Collie big batteries on a spot
market; and, if so, what is the anticipated price per megawatt hour AEMO will
have to pay Synergy for that energy?
(5) How will
Synergy recover the over $2 billion construction cost of the Kwinana 1 and
Collie big batteries?
AnswerView source ↗
I thank the honourable member for
some notice of the question. On behalf of the Minister for Energy, I provide
the following answer.
(1) Yes.
(2) Non-co-optimised essential
system service contractual terms are commercial-in-confidence.
(3) Not applicable.
(4) Synergy
follows the wholesale electricity market rules and the offer construction
guidelines set out by the Economic Regulation Authority. Battery prices are
dynamic and depend on the system conditions.
(5) Synergy has
registered its battery energy storage system facilities with the AEMO to
provide electricity capacity and essential system services. Synergy will
receive revenue from the market when the battery provides these services.
Additionally, Synergy plans to register its Collie battery as it approaches its
commission date in 2025.
some notice of the question. On behalf of the Minister for Energy, I provide
the following answer.
(1) Yes.
(2) Non-co-optimised essential
system service contractual terms are commercial-in-confidence.
(3) Not applicable.
(4) Synergy
follows the wholesale electricity market rules and the offer construction
guidelines set out by the Economic Regulation Authority. Battery prices are
dynamic and depend on the system conditions.
(5) Synergy has
registered its battery energy storage system facilities with the AEMO to
provide electricity capacity and essential system services. Synergy will
receive revenue from the market when the battery provides these services.
Additionally, Synergy plans to register its Collie battery as it approaches its
commission date in 2025.
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