The role of residential PV-battery system within Australian Energy Market operation

Penetration of residential PV systems in Australia is growing steadily and is projected to increase significantly in coming years. Battery energy storage systems may improve the efficiency of PV applications mitigating challenges related to stochastic nature of solar energy. Traditionally, households use batteries to increase PV self-consumption. This approach allows households to buy less electricity from the grid resulting in economic benefits. Customers have the potential to generate additional revenues by providing ancillary services to the energy market participants. In this paper, a techno-economical model is developed to determine the role of a residential PV-battery systems within Australian Energy Market operation. The market operation from both a retailer and consumer perspectives are considered. Two cases are compared: the first, when households use their batteries to maximize PV self-consumption; and the second, when batteries are used in coordination with the retailer. Results suggest that in the second case, both the consumer and the retailer benefit.