Australia Shows How Regulated Utilities Can Own Storage

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Regulated networks allowed to own storage in Australia
  • Leasing model allows participation in competitive markets

Unique business models being explored in Australia allow regulated networks to own energy storage assets, something that is forbidden by most regulators in Europe and some in the U.S.

Networks in Australia have been allowed to own storage assets as long as those regulated entities don’t directly participate in the competitive energy markets. To abide by rules, regulated networks lease out the operations of storage assets to third parties on a fixed long-term contract.

Regulated networks or utilities have inherent advantages in owning storage as they have access to low-cost capital and to prime real estate in areas of the network where storage is most valuable.

Australia’s example provides a unique model for regulated utilities globally to own storage and to also extract value from competitive markets through leasing arrangements.

Clients can access the full report “Business Models for Energy Storage – Australian Examples” The Terminal or on web

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us