- 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.
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