Arena and AGL back 'world's biggest' virtual power plant for Adelaide

 About half the cost of a home’s energy bill is linked
to the network's cost recovery of it poles and wires.
 .

Adelaide will be home to the world’s largest “virtual power plant” – AGL is rolling out 1,000 battery systems to homes and businesses, with backing from the Australian Renewable Energy Agency (Arena).

AGL and Arena say the project will improve network security and dampen a volatile wholesale electricity price in South Australia. However, an energy expert says that at the current size, the system will have a minimal impact on network security or wholesale prices, but might pose a challenge to the revenues of companies that own the poles and wires.

Offered to homes and businesses with solar systems, the $20m AGL project, backed with $5m from Arena, will operate like a 5MW peaking power plant, providing power to homes and businesses during periods at optimal times.

The chief executive of AGL, Andy Vesey, told Guardian Australia: “The beauty of the project is it’s being done over 1,000 batteries, and that’s how we deliver an aggregate benefit to the grid itself.

Read Michael Slezak’s story on The Guardian - “Adelaide charges ahead with world’s largest 'virtual power plant'.”