Hornsdale Battery Case Study


Hornsdale Battery Case Study


If you are looking to develop, invest in, or operate grid-scale batteries, you will know first hand how hard it is to get your head around the complexity of wholesale markets. We set ourselves a mission to demystify battery operation and value stacking for our clients by using the 100 MW/129 MWh Hornsdale Power Reserve (world's biggest lithium-ion battery) as a case study. Our independent analysis uses 21 months of real world data to dive deep into the value of energy arbitrage and frequency control ancillary services in Australia’s National Electricity Market.

Our analysis uses data from 1 January 2018 to 30 September 2019 to shed light on the following:

  • Operational strategies, cycling, efficiency, and depth of discharge.

  • Bidding strategies and merchant revenue earned from energy arbitrage and all eight frequency control ancillary services (FCAS). Includes explanations of the complex trade-offs in co-optimising energy and FCAS.

  • Benchmarking the performance of the Hornsdale battery against our optimised model of operation. Our detailed five minute modelling reveals where the Hornsdale battery has done well and where it has missed opportunities in the market. These insights will help you bridge the gap between theoretical business cases and real world performance.

  • Scenario analysis that examines how the storage duration of a battery, ranging from one hour to four hours, impacts merchant revenue under both South Australian and Victorian market conditions.

  • Helpful tips throughout the report on how to build a robust business case for batteries.

  • All chart data provided in a separate excel file for easy further analysis.

The Australian battery industry has been calling this the "must have" report for the sector. Those who have benefited from the report include project developers, investors, electricity retailers (from startups all the way to gentailers), consultants (including those from the Big Four professional services firms), and virtual power plant aggregators. The Hornsdale Power Reserve Case Study has also been supported by the Australian Energy Storage Alliance.

Best of all, this isn't a 500 page report you will never have time to read. We have designed the report with busy professionals in mind. Our clear and concise analysis will give you a comprehensive understanding of the revenue considerations for batteries in just under 40 pages.

If you have any questions about the report, please feel free to contact us.


See our Hornsdale battery analysis in the media

Take a sneak peek at some of the insights from the report in these RenewEconomy articles:

Battery storage: Why accurate price forecasting is key to capturing revenue
Tesla big battery at Hornsdale eans record revenue

Our Managing Director, Marija Petkovic, also spoke on ABC Radio Adelaide about some of our findings and the importance of frequency control in an increasingly renewable grid. Listen to the full interview here.