Hydro Tasmania’s Stage 2 analysis of the future energy market provides perspective on the technical and economic models and frameworks that underpin the Battery of the Nation opportunity.
Stage 1 of the Future State NEM analysis confirmed the significant opportunity that exists for Tasmania to support a transforming National Electricity Market (NEM).
The Battery of the Nation Future State NEM analysis (Stage 2) project has now investigated the technical and economic drivers that will enable Tasmania to play a greater role in the NEM, communicating key concepts and challenging existing preconceptions and approaches about how the power system works and is planned.
- Name: Chris Gwynne, Program Director
Media Release: Future State NEM Analysis Finds Tasmania Could Become the Battery of the Nation
Tasmania has strengthened its case to become the Battery of the Nation as a new study released today by Hydro Tasmania confirms the state can play a significant role in the transformation of the National Electricity Market over the next two decades.
Hydro Tasmania has undertaken a series of detailed analyses into the market structure; the modelling and forecasting frameworks; revenue and finance models for pumped hydro; how the energy market is changing and what that means for the industry; and an exploration of the system outcomes from an expanded renewable energy capacity. This will be shared through a range of communication channels, principally through the provision of focussed discussion papers.
The Battery of the Nation Future State NEM analysis (Stage 2) project will facilitate better understanding across the market through improved context. This work will support industry stakeholders to develop a more detailed, refined and robust understanding of the role of storage in the transforming energy market. Through sharing learnings on the market mechanisms and reforms needed to unlock the Tasmanian opportunity, this project will provide pathways to an efficient and effective future NEM.
Hydro Tasmania’s analysis will support and inform critical work on the national electricity market modelling and future structure, and inform and enhance work by the Energy Security Board, the Australian Energy Market Operator and other specific market modelling work.
Reservoirs of water are poised to play a key role storing renewable energy to bolster the grid.
Tasmania’s plan to become the ‘battery of the nation’ is one step closer, with the initial findings from a feasibility study predicting a second interconnector may be commercially viable in the 2030s or even sooner.