Title: Promoting behind-the-meter battery storage: options for more effective government support and regulation

Authors: Carl Tidemann; Nicholas Engerer; Evan Franklin; Karen Hussey; John C.V. Pezzey

Addresses: Fenner School, ANU, 141 Linnaeus Way, Acton, ACT 2601, Australia ' Fenner School, ANU, 141 Linnaeus Way, Acton, ACT 2601, Australia ' Centre for Renewable Energy and Power Systems, School of Engineering, AMC, University of Tasmania, Hobart, TAS 7005, Australia ' Centre for Policy Futures, Global Change Institute University of Queensland, Level 4, St. Lucia, QLD 4067, Australia ' Fenner School, ANU, 141 Linnaeus Way, Acton, ACT 2601, Australia

Abstract: We examine the use of subsidies to promote behind-the-meter battery installation, the limitations and perverse outcomes created by these subsidies, particularly as a result of suboptimal spatial concentration. We suggest the use of consumer subsidies to promote behind-the-meter batteries is unlikely to lead to optimal outcomes in aiding the integration of distributed generation sources (solar PV). It is also possible batteries could reduce the reliability of the grid. The problems identified relate to the undirected installations of batteries within the grid due to the reliance on consumers to take part in a subsidy scheme. Recommendations for policy makers and regulators are to encourage optimal installations through directing subsidies, and in lieu of that, to orchestrate and/or coordinate individual installed battery capacity.

Keywords: behind-the-meter batteries; consumer subsidies; innovation; technology; energy storage; energy security; regulation; electricity sector transformation; policy analysis.

DOI: 10.1504/IJTIP.2018.094407

International Journal of Technology Intelligence and Planning, 2018 Vol.12 No.1, pp.77 - 98

Received: 11 Nov 2017
Accepted: 28 Mar 2018
Published online: 31 Aug 2018 *