Prior to the Hornsdale power storage facility, it was unknown as to the benefits in regulating energy output and efficiency in the grid system.
This removes some of the volatility in the spot price of electricity that occurs with the daily challenge to match supply and demand.
Because renewable energy is not considered baseline power load, when theres an issue or a need to add baseload power to the grid, it takes time come online, allowing existing generators to sell into the demand at higher prices generating extra revenue.
Look at IFN's own numbers when this occured in Adelaide with power outages from the base load generators. They had a higher overall revenue, which means a higher realised price for electricity for that period.
With energy storage systems entering the system nationwide over say the next 5 years, one can expect these efficiencies to flow throw the entire grid and reduce or even potentially remove all of these volatile pricing scenarios. Electricity demand will still grow, but the in the short term as predicted by the AEMO, wholesale electricity prices should fall in the short term.
The higher realised prices involved with supplying these spikes will be removed from future projections, as it didnt exist two years ago. A few million a quarter over a 20+ year lifespan is significant.
