Redesigning Asia-Pacific Energy Markets to Unlock Battery Potential
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Ancillary services like frequency control are crucial for reliable grid operations and balancing supply and demand.
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Redesigning ancillary services markets in Asia Pacific to be more sophisticated (e.g. daily or weekly rolling markets) could enable better uptake of grid-scale batteries.
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Australia has one of the most mature frequency control and ancillary services (FCAS) markets globally, with 10 separate services procured daily. Last year, batteries made up 40-50% of Australia's FCAS market.
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Other APAC markets like Taiwan, Japan, and China have realized the need for more sophisticated ancillary services procurement and are transitioning to day-ahead markets.
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While ancillary services enable key revenues for batteries now, these opportunities may saturate long-term. However, overhauling these markets is key to support broader energy transition.