Energy Ones solutions for battery optimization and real time trading in Australia
Battery energy storage systems (BESS) are becoming increasingly critical as renewable energy sources, particularly solar and wind, capture a larger share of the market. In the face of intermittent production, batteries help stabilize the grid, compensate for fluctuations in production and consumption, and capitalize on volatile market conditions. Interest in BESS installations is rising globally, but the Australian market stands out for several reasons.
One key factor is Australia’s 24-hour continuous power market, which operates on a 5-minute granularity, compared to the 15-minute granularity of EPEX in Europe. Additionally, market rules in Australia encourage BESS and renewable energy participation, aligning with the country’s ambitious plans to expand renewable generation and retire a number of coal-fired generators by 2030.
Recently, I spoke with Reza Evans, GM for Special Projects from Energy One, who is leading the company’s efforts in supporting BESS management for trading on the Australian market. He explained that BESS can participate in multiple markets in Australia. For example, one of the customers participates in 10 frequency control and ancillary services markets, alongside the wholesale market with their battery and this creates vast opportunities to optimize trading activities. Moreover, the volatility in Australia’s 5-minute market is among the highest in the world. Prices can and do vary from –1,000 $/MWh to 17,500 $/MWh, making battery trading potentially very profitable.
However, optimizing BESS is a complex task, requiring careful consideration of both commercial and technical constraints. Each battery has unique characteristics, and these technical limitations must be captured in a flexible way. For example, warranty conditions typically limit the number of charge-discharge cycles within a given period, a restriction that must be factored into trading decisions. In many cases, it’s essential to balance the cost of battery degradation against the potential benefits of additional cycles, even within warranty limits. Energy One’s optimization algorithm can integrate with a Battery Management System (BMS) to account for degradation costs versus trading profits in near real-time decision-making, as I was told by my respondent.
While cross-market optimization is central to battery trading, it’s only part of the larger workflow. Effective optimization relies on accurate price forecasting and automated market interfaces that enable low-latency trading 24/7. Market price forecast is imported and adjusted using machine learning techniques to ensure optimal trading decisions. Energy One’s Solution automates the entire process, including battery optimization, market bidding, dispatch, BMS interfacing, availability and outage management, trading, scheduling, and reporting. It integrates seamlessly with the AEMO (Australian Energy Market Operator), EMMS (Energy Market Management System) for creation and submission of Energy, FCAS (Frequency Control Ancillary Services) and Intermittent Availability offers to the NEM (National Electricity Market).
Many BESS and renewable energy investors and operators lack the resources to manage trading on a 24 x 7 basis, even with advanced solutions like Energy One’s. To address this, Energy One not only provides software but also offers Trading as a Service. The company is already trading a portfolio of batteries for a large energy client and responding to fast-growing interest from other BESS participants, according to Reza.
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