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October 2, 2023

New Report: Optimizing Connections Between U.S. Grid Operators Will Reduce Customer Costs, Improve Resilience

WASHINGTON, D.C. – U.S. power market monitors in the Eastern Interconnection have recommended that grid operators optimize existing interregional transmission for more than a decade, yet inefficient usage of interties continues to raise system costs and reduce reliability, according to a new report from The Brattle Group and Willkie Farr & Gallagher LLP.

Optimizing the use of existing or new interregional transmission capability between the Southwest Power Pool (SPP), Midcontinent ISO (MISO), or PJM Interconnection (PJM) would provide approximately $50-60 million annually in additional value for every gigawatt of intertie capacity beyond what bilateral trades are currently able to capture. The report, “The Need for Intertie Optimization: Reducing Customer Costs, Improving Grid Resilience, and Encouraging Interregional Transmission,” is sponsored by the American Council on Renewable Energy (ACORE), the Advanced Power Alliance (APA), Grid United, Invenergy, MAREC Action, and the Natural Resources Defense Council (NRDC).

“Inefficient use of interregional transmission between grid operators will increasingly cost ratepayers,” said Johannes Pfeifenberger, Principal with The Brattle Group and report co-author. “Meanwhile, Western energy imbalance markets have optimized available transmission and interties among system operators and their balancing authority areas, saving more than $4 billion since their inception.”

Rather than optimizing the interties between them, the grid operators in the Eastern U.S. have instead elected to pursue Coordinated Transaction Scheduling (CTS), which has not significantly improved the efficiency of interregional transmission utilization. In fact, market monitors have continued to document large inefficiencies, pointing out that electricity even flows the wrong direction between some regions — from higher-priced to lower-priced areas — displacing more-efficient region-internal generation with less-efficient external generation.

The report concludes that the Federal Energy Regulatory Commission (FERC) is authorized to implement intertie optimization options and, in fact, has already used such authority by approving CTS and the Western energy imbalance markets.

“FERC has long been concerned with market seams, which impair market efficiency, competition, and reliability, and has previously recognized the value of optimizing interties to more efficiently utilize interregional transmission ties,” said report co-author Norman C. Bay, Chair of the Energy Regulatory & Enforcement Practice Group at Willkie Farr & Gallagher LLP and former FERC chairman. “If grid operators fail to act, FERC can, and should, step in to remedy inefficiencies on the interregional transmission facilities connecting energy markets. This is one way to improve the nation’s interregional transmission capabilities as we await FERC’s next steps on transmission planning.”

In addition to urging grid operators to optimize available interregional interties in both real-time and day-ahead markets, the report also recommends that regions allow for the integration of merchant transmission lines, which represent the large majority of proposed new interregional links, into any intertie optimization efforts.

“Merchant interregional transmission projects connect grid regions, ensuring reliable, affordable power for millions of Americans, and they are increasingly likely to be the only interregional transmission that comes online in the U.S. this decade,” said Invenergy Executive Vice President for Transmission Shashank Sane. “This report highlights the critical need to better utilize existing interregional interties but also the importance of frameworks that allow for the integration of merchant lines.”

Additional comments from report sponsors:

“Recent extreme weather events have caused widespread power outages, the duration and extent of which could have been significantly reduced with additional interregional transmission capacity,” said ACORE President and CEO Gregory Wetstone. “Building a transmission system that’s bigger than the weather will require the U.S. to more efficiently use existing interregional ties while also investing in the big projects needed to bring the grid into the 21st century.”

“This analysis estimates that implementing intertie optimization for one gigawatt of transfer capability between SPP and MISO would result in upwards of $60 million per year in additional energy market value,” said Steve Gaw, APA Senior Vice President, Infrastructure + Markets. “These cost savings coupled with improved system reliability just makes sense.”

“Massive electricity demand growth means we need higher voltage transmission lines and more HVDC,” said Grid United Chief Commercial and Technology Officer Kris Zadlo. “This report further emphasizes the importance of interregional transmission projects to reducing power costs while keeping the lights on across the nation.”

“PJM’s market monitor has highlighted the prevalence of inefficient trading behavior between regions, leading to higher electricity costs,” said Evan Vaughan, Executive Director of MAREC Action. “The current approach of coordinated transaction scheduling is simply inadequate. We urge PJM to better optimize its interties with neighboring grid operators, allowing consumers to reap cost savings and to help address future resource adequacy challenges.”

“The value of interregional interties is projected to increase as more renewable energy resources come online and severe weather events occur more frequently,” said NRDC Senior Advocate Cullen Howe. “Growth in renewable generation will lead to more low-cost, clean energy sources in many parts of the country, and with a more efficient interregional transmission system, U.S. consumers will be able to access these low-cost sources and gain the benefits of expanded clean energy.”

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Media Contact:

Ellie Potter
Sr. Public Affairs Manager, Macro Grid Initiative
American Council on Renewable Energy
potter@acore.org

The post New Report: Optimizing Connections Between U.S. Grid Operators Will Reduce Customer Costs, Improve Resilience appeared first on ACORE.

New Report: Optimizing Connections Between U.S. Grid Operators Will Reduce Customer Costs, Improve Resilience

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Renewable Energy

ACORE Statement on Treasury’s Safe Harbor Guidance

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ACORE Statement on Treasury’s Safe Harbor Guidance

Statement from American Council on Renewable Energy (ACORE) President and CEO Ray Long on Treasury’s Safe Harbor Guidance:

“The American Council on Renewable Energy (ACORE) is deeply concerned that today’s Treasury guidance on the long-standing ‘beginning of construction’ safe harbor significantly undermines its proven effectiveness, is inconsistent with the law, and creates unnecessary uncertainty for renewable energy development in the United States.

“For over a decade, the safe harbor provisions have served as clear, accountable rules of the road – helping to reduce compliance burdens, foster private investment, and ensure taxpayer protections. These guardrails have been integral to delivering affordable, reliable American clean energy while maintaining transparency and adherence to the rule of law. This was recognized in the One Big Beautiful Act, which codified the safe harbor rules, now changed by this action. 

“We need to build more power generation now, and that includes renewable energy. The U.S. will need roughly 118 gigawatts (the equivalent of 12 New York Cities) of new power generation in the next four years to prevent price spikes and potential shortages. Only a limited set of technologies – solar, wind, batteries, and some natural gas – can be built at that scale in that timeframe.”

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ABOUT ACORE

For over 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s leading voice on the issues most essential to clean energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a clean energy economy. For more information, please visit http://www.acore.org.

Media Contacts:
Stephanie Genco
Senior Vice President, Communications
American Council on Renewable Energy
genco@acore.org

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Should I Get a Solar Battery Storage System?

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Frequent power outages, unreliable grid connection, sky-high electricity bills, and to top it off, your solar panels are exporting excess energy back to the grid, for a very low feed-in-tariff. 

Do all these scenarios sound familiar? Your answer might be yes! 

These challenges have become increasingly common across Australia, encouraging more and more homeowners to consider solar battery storage systems. 

Why? Because they want to take control of their energy, store surplus solar power, and reduce reliance on the grid.  

But then again, people often get perplexed, and their biggest question remains: Should I get a Solar Battery Storage System in Australia? 

Well, the answer can be yes in many cases, such as a battery can offer energy independence, ensure better bill savings, and provide peace of mind during unexpected power outages, but it’s not a one-size-fits-all solution.  

There are circumstances where a battery may not be necessary or even cost-effective. 

In this guide, we’ll break down when it makes sense and all the pros and cons you need to know before making the investment.

Why You Need Battery Storage Now?

According to data, Australia has surpassed 3.9 million rooftop solar installations, generating more than 37 GW of PV capacity, which is about 20% of electricity in the National Electricity Market in 2024 and early 2025.  

Undoubtedly, the country’s strong renewable energy targets, sustainability goals, and the clean‑energy revolution have brought solar power affordability, but the next step in self‑reliance is battery storage. 

Data from The Guardian says that 1 in 5 new solar installs in 2025 now includes a home battery, versus 1 in 20 just a few years ago, representing a significant leap in adoption.  

Moreover, the recent launch of the Cheaper Home Batteries program has driven this uptake even further, with over 11,500 battery units installed in just the first three weeks from July 1, and around 1,000 installations per day. 

Overall, the Australian energy market is evolving rapidly. Average household battery size has climbed to about 17 kWh from 10–12 kWh previously.  

Hence, the experts are assuming that 10 GW of new battery capacity will be added over the next five years, competing with Australia’s current coal‑fired capacity.

What Am I Missing Out on Without Solar Batteries?

Honestly? You’re missing out on the best part of going solar. 

Renewable sources of energy like solar, hydro, and wind make us feel empowered. For example, solar batteries lower your electricity bills, minimize grid dependency, and also help to reduce your carbon footprint 

But here’s the catch! Without battery storage, you’re only halfway there! 

The true magic of solar power isn’t just in producing clean energy; it’s storing and using it efficiently.  

A solar battery lets you store excess energy and use it when the sun goes down or the grid goes out. It’s the key to real energy independence. Therefore, ultimately, getting a battery is what makes your solar system truly yours.

Why You Need Battery Storage Now

Here’s a list of what you’re missing out on without a solar battery: 

  1. Energy Independence 
  2. Batteries help you to stay powered even during blackouts or grid failures. With energy storage, you don’t have to think of fuel price volatility and supply-demand disruption in the  Australian energy market. 

  3. Maximized Savings  
  4. Adding a solar battery to your solar PV system allows you to use your own stored energy at night instead of repurchasing it at high rates. It also reduces grid pressure during peak hours, restoring grid stability. 

  5. Better Return on Investment ROI 
  6. Tired of Australian low feed-in-tariff rates 

    Make full use of your solar system by storing excess power at a low price rather than exporting it. Solar panel and battery systems can be a powerful duo for Australian households.  

  7. Lower Carbon Footprint 
  8. Despite the steady growth in solar, wind, and hydro, fossil fuels still dominate the grid. Fossil fuels supplied approximately 64% of Australia’s total electricity generation, while coal alone accounted for around 45%. 

    These stats highlight why solar battery storage is so valuable. By storing surplus solar energy, homeowners can reduce their reliance on a grid that still runs on coal and gas.  

  9. Peace of Mind 
  10. Enjoy 24/7 uninterrupted power, no matter what’s happening outside.  

    Besides powering urban homes and businesses, batteries also provide reliable power backup for off-grid living at night when your solar panel can’t produce, ensuring peace of mind. 

What Size Solar Battery Do I Need?

While choosing the battery size, it isn’t just about picking the biggest one you can afford; it’s about matching your household’s energy consumption pattern. There is no one-size battery that will make financial or functional sense for everyone. 

Nevertheless, if you have an average family of four with no exceptional power demands, you may get by with a 10kWh to 12kWh battery bank as a ready-to-roll backup system.  

Well, this is just an estimation, as we have no idea of your power needs, because selecting a battery is highly subjective to the household in question. 

With that being said, you can get a good idea of how much power you use on average by analyzing your electric bill copy. Also, keeping track of which appliances you use the most and which ones require the most power will help you.  

So, to figure out the ideal battery size for your home, you need to consider three most important things: 

  1. Your Daily Energy Usage

Check your electricity bill for your average daily consumption (in kWh). Most Australian homes use between 15 to 25 kWh per day. 

  1. Your Solar System Output

How much excess solar energy are you generating during the day? That’s the power you’ll store to use later rather than exporting. 

  1. Your Nighttime Power Usage

A battery is most useful at night or during grid outages. So, estimate how much power you typically use after sunset. However, by using a battery, you can also get the freedom of living off the grid. 

Sizing Up: The Ideal Home Battery for Aussies! 

  • For small households and light usage, a 5 kWh battery will be suitable. 
  • For average Australian households, adding a 10 kWh battery would be enough. 
  • Large homes and high-energy users will need a 13 to 15 kWh system. 
  • For full independence, off-grid living, or blackout protection, you may require a larger battery size of 20+ kWh. 

Want help calculating your exact needs? Just drop your daily usage and solar output, and we’ll do the math for you! Cyanergy is here to help!  

Sizing Up: The Ideal Home Battery for Aussies! 

  • For small households and light usage, a 5 kWh battery will be suitable. 
  • For average Australian households, adding a 10 kWh battery would be enough. 
  • Large homes and high-energy users will need a 13 to 15 kWh system. 
  • For full independence, off-grid living, or blackout protection, you may require a larger battery size of 20+ kWh. 

Want help calculating your exact needs? Just drop your daily usage and solar output, and we’ll do the math for you! Cyanergy is here to help! 

How Much Do Solar Batteries Cost?

How Much Do Solar Batteries Cost

Previously, you would have to pay between $3000 and $3600 for the battery alone, plus the cost of installation, for every kWh of solar battery storage.  

However, you can currently expect to pay between $1200 and $1400 for each kWh of solar battery storage. That is a price reduction of approximately 52%, and things will only get better from here. 

Does that imply solar batteries are cheap now? Not really, but the cost is well justified by the pros of having a battery storage system. 

Also, while paying for solar batteries, you have to consider many other factors like the type of battery, your solar panel system configurations and compatibility, brand, and installation partner.  

These will significantly influence the price range of battery storage. 

Is a Solar Battery Worth It | Pros and Cons at a Glance

It’s okay to feel a little overwhelmed while deciding to invest your hard-earned money in a battery.  

So, here we’ve listed the pros and cons of having a solar battery to help you in the decision-making process. 

Benefits of Solar Battery Storage 

  • Solar batteries help you become self-sustaining. 
  • You don’t have to care about power outages anymore 
  • In the event of any natural disaster, you will still have a power source 
  • Battery prices are dropping significantly as we speak 
  • During peak hours, grid electricity prices increase due to high demand; you can avoid paying a high price and use your battery. It’s essentially free energy, as solar generates energy from the sun. 
  • Reduced carbon footprint as the battery stores energy from a renewable source. 

Advantages of battery for the grid and national energy system: 

  • Batteries support Virtual Power Plants (VPPs). In 2025, consumers get financial bonuses (AUD 250‑400) for joining, plus grid benefits via distributed dispatchable power.  
  • Grid‑scale batteries like Victoria Big Battery or Hornsdale Power Reserve are increasing system resilience by storing large amounts of renewable energy and reducing blackout risk. 

Drawbacks of Solar Battery Storage 

  • One of the biggest barriers is that solar batteries have a high upfront cost, which makes installation harder for residents. 
  • Home batteries require physical space, proper ventilation, and can’t always be placed just anywhere, especially in smaller homes or apartments. 
  • Most batteries, like lithium-ion batteries, last 5 to 15 years, meaning they may need replacement during your solar system’s lifetime. 
  • While many systems are low-maintenance, some may require software updates, monitoring, or even professional servicing over time. 
  • Battery production involves mining and processing materials like lithium or lead, which raise environmental and ethical concerns.   

Should You Buy a Solar Battery?: Here’s the Final Call!

You should consider buying a solar battery if several key factors align with your situation.  

First, it’s a strong financial move if you live in a state where federal and state incentives can significantly reduce the upfront cost. This can make the investment far more affordable.  

A solar battery can be especially worthwhile if you value having backup power during outages, lowering your electricity bills, and gaining a measure of energy independence from the grid.  

Additionally, you should be comfortable with taking a few extra steps to get the most value out of your system, such as joining a virtual power plant (VPP), which allows your battery to participate in grid services in exchange for modest returns.  

Finally, it’s worth noting that rebates decline annually, and early adopters get the most value.  

Takeaway Thoughts

Installing a solar battery in Australia in mid‑2025 offers substantial financial, environmental, and energy‑security benefits, especially if you qualify for multiple subsidies and have good solar capacity.  

With rebates shrinking after 2025 and demand surging, early movers stand to benefit most. 

By helping balance the grid and reduce dependence on fossil fuels, home battery adoption contributes significantly to Australia’s national goals of 82% renewable energy by 2030 

It’s not just about savings; it’s about being part of a smarter, cleaner, more resilient electricity future for Australia. 

Looking for CEC-accredited local installers?  

Contact us today for any of your solar needs. We’d be happy to assist!  

Your Solution Is Just a Click Away

The post Should I Get a Solar Battery Storage System? appeared first on Cyanergy.

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Renewable Energy

Wine Grapes and Climate Change

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I just spoke with a guy in the wine industry, and I asked him how, if at all, climate change is affecting what we does.

From his perspective, it’s the horrific wildfires whose smoke imbues (or “taints”) the grapes with an unpleasant flavor that needs to be modified, normally by creative methods of blending.

Wine Grapes and Climate Change

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