Dr. Thomas questions the shift from gas turbines to lithium batteries for calculating the benchmark reserve capacity price in the SWIS, focusing on the rationale, classification of batteries, price impacts, and potential risks to industry and jobs. The parliamentary secretary's response highlights cost-effectiveness, battery functionality, evolving technology, and investment opportunities.

AnsweredQoN 1450Legislative Council
Asked
12 November 2024
Portfolio
Energy

QuestionView source ↗

SOUTH WEST
INTERCONNECTED SYSTEM — BENCHMARK RESERVE CAPACITY PRICE
1450. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to the benchmark reserve
capacity price for the south west interconnected system.
(1) Why did Energy Policy WA promote the change of the
generation type for the calculation of the benchmark reserve capacity
price from an open-cycle gas turbine to a lithium battery?
(2) Does the government and/or EPWA
now consider and classify batteries as generators?
(3) What impact will this decision
have on new price increases to the benchmark reserve capacity price?
(4) What additional risk has this
decision put on industry and jobs?

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) The reference
technology for the benchmark reserve capacity price reflects the least cost
technology on the system that can meet all specified technical requirements and
be delivered in a timely manner.
(2) Batteries
operate in the same way as generators when they discharge to contribute to
meeting system demand and behave as loads when they recharge.
(3) It is
expected that the reference technology type will continue to evolve to reflect
the changing needs of the system.
(4) The Cook
government's orderly energy transition is providing opportunities for
investment, demonstrated in part by the new storage resources entering the
system.

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