Renewable Energy Hub announces the first transaction for Virtual Storage

In Australia, Renewable Energy Hub has revealed the first transactions for its new Virtual Storage power swap. The participants are able to purchase and sell stored power using this monetary instrument, allowing them to be able to set the spread between discharge and charge price for both pumped hydropower operators and battery storage.

One of the power suppliers who have already utilized the tech firm’s platform is Hydro Tasmania, which sold power to ERM Power and Macquarie Group. Hydro Tasmania was able to sell rights to the highest-priced discharge energy and buy a fixed MW block at lower price charge energy for the financial year 2022. The Renewable Energy Hub Co-founder head of markets, Chris Halliwell, said that financial markets are evolving as the energy markets evolve.

The Virtual Storage Contract allows storage operators not to encounter any losses in the revenue they generate from selling power. It also opens opportunities to these operators to spot prices, enabling them to get more attractive revenue chances in future markets and hedge their risk.

The discharge and charge periods are in the same MWhs, and both the buyer and seller agree on the transaction price. Caroline Wykamp, who works at the Hydro Tasmania as the executive general manager in charge of commercial, said that people would understand the benefits of deep storage when a firming capacity will be provided, and variable renewable power would be an excellent source of supply.

Caroline said that the Virtual Storage hedge contract is a win-win situation for both the buyer and seller. This is because it demonstrates the value of trade, and it is similar to financial market and further liquidity. This type of trade provides support required to develop a pumped hydro together with other storage technologies to support future renewable energy in Australia. Caroline said that the company is committed to ensuring that it comes up with unique and innovative technologies that would help to boost trade.

There is a great need to trade stored power in Australia for optimal revenue tapping since most of the storage comes on the grid. The company says that the Virtual Storage contract will be utilized and is expected to grow in the coming years. It is good to note that this Virtual Storage is one of the latest projects to be invented by Renewable Energy Hub. It was funded by Australian Renewable Energy Agency (ARENA), and its main objective was to design and come up with something innovative and standardized hedge contracts.