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<p>The Australian energy market is notoriously unpredictable, with prices that can swing wildly. This volatility can be a double-edged sword for those with energy storage solutions like battery systems. Traditional energy export strategies often rely on averaging prices over a period, such as half an hour, which can lead to missed opportunities and diminished returns. However, a well-informed and strategic approach can transform these fluctuations from a hazard into a high-reward opportunity.</p><p>Consider a recent evening in Queensland's energy market: prices started at a mere 12c/kWh and soared to an incredible 1,420c/kWh by the end of a half-hour window. Managing a battery system under these conditions requires foresight and precision. One such battery, under my management, exported just 25Wh at the low rate before switching to a real-time pricing model, <a data-mce-href="https://localvolts.com/" href="https://localvolts.com/">LocalVolts</a>, earlier in the month. When the price peaked, the battery exported 273Wh, earning $3.8 in just five minutes—a stark contrast to the another platform's averaged payout of $2.76 for the entire period.</p><table style="border-collapse: collapse; width: 100%;" border="1" data-mce-style="border-collapse: collapse; width: 100%;"><tbody><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;"><br></td><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">Five Minute Price</td><td style="width: 33.335%;" data-mce-style="width: 33.335%;">Thirty Minute Price</td></tr><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">17:35</td><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">12c/kWh</td><td style="width: 33.335%;" data-mce-style="width: 33.335%;">$2.76</td></tr><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">17:55</td><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">1,420c/kWh</td><td style="width: 33.335%;" data-mce-style="width: 33.335%;">$2.76</td></tr></tbody></table><p>This change in the last few periods is not uncommon and leaves users who watch the predictions confused as they swing wildly trying to estimate average.&nbsp;</p><p>But beyond the strategic choice of when to export lies another critical factor: the speed of response. In the past week, my system's average response time to price signals was within 21 seconds, allowing the majority of the five-minute window to capitalize on the high prices. This rapid response is key, by comparision I know of another company that issued an SMS alert for that price spike two minutes before the end of a half-hour window. That was too late for customers. The damage was done to the energy bill in the previous 28 minutes, and there's little you can do to mitigate it.</p><p>This incident underscores two critical lessons: averaging hurts and speed is king. Averaging dilutes the potential earnings from spikes in energy prices and can lead to inefficient use of battery storage. And in the race against time, speed is critical. Why export energy at a low rate in the hope of a spike when you can conserve and deploy the battery's capacity precisely when the spike occurs? Timely reporting and the ability to switch inverters and loads within seconds are not just advantageous—they're essential for modern energy management.</p><figure id="figure-vzt2orgvyelwobo7i5"><img id="vzt2orgvyelwobo7i5" src="https://cdn.durable.co/blocks/24AJ6VLblnqrpTeV9R3MWj4xzYhRHKOct9yzn5Lw4C9mOKekjPwTxy8TKoswBLma.png" alt="Best friends" title="Best friends" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: 45% 30%;" data-corners="small" data-aspect="16:9" data-caption="" data-positionX="45%" data-positionY="30%" data-fullWidth="false"/></figure>

Maximizing Battery Value in Volatile Energy Markets: A Strategic Guide

<p>As I embarked on the intricate path of developing algorithms for energy trading, little did I anticipate that my journey would weave through the realms of HVAC systems and the principles of thermodynamics. My initial academic voyage at Queensland University of Technology (QUT), where I pursued a degree in Applied Science (Physics Major), turned out to be very useful. It equipped me with a robust foundation in understanding the natural laws that govern our universe. Yet, the frequency with which I lean on this knowledge in my professional endeavors still manages to surprise me.</p><p>Linking physics to the practicalities of energy management and software development might seem unconventional at first glance. However, the complexities of energy trading share a fundamental connection with the principles of thermodynamics, especially when optimizing for efficiency and sustainability in energy usage.</p><p>Recently, my exploration took an unexpected turn towards the heating, ventilation, and air conditioning (HVAC) domain. The catalyst for this diversion was an attempt to understand and mitigate excessive energy consumption in residential settings, a challenge that presented itself in the most practical form: a neighbor's air conditioning system.</p><figure id="figure-kb7lyn9omlsiftq80"><img id="kb7lyn9omlsiftq80" src="https://cdn.durable.co/covers/18kGZp659Qb5z2MYC3JH5zNp0vnCFDaFa9velJ51unA4KMqaSU0nMivOngstRuoH.png" alt="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="The temperature difference was only 4 degrees, you want at least 10" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/18kGZp659Qb5z2MYC3JH5zNp0vnCFDaFa9velJ51unA4KMqaSU0nMivOngstRuoH.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"><figcaption class="body-normal text-gray-500 mt-2">The temperature difference was only 4 degrees, you want at least 10</figcaption></figure><p>Armed with a Fluke thermal image scanner, I embarked on a diagnostic quest to uncover the inefficiencies lurking within this HVAC system. The thermal images revealed a mere 4-5 degree Celsius difference between the intake and exhaust air temperatures of the air conditioning unit. This minimal temperature differential not only highlighted a significant inefficiency but also underscored the importance of practical thermodynamics knowledge in addressing real-world problems.</p><h3>Thermodynamics 101</h3><p>The physics behind this is actually not that bad. The idea is to get the highest coefficient of efficiency as possible. In cooling, this is the Carnot COP which can be expressed as the cooling temperature over the difference in temperature from intake to exhast.</p><figure id="figure-ldzlyj2gp8lsifin9j"><img id="ldzlyj2gp8lsifin9j" src="https://cdn.durable.co/blocks/28vxVEnGCKTOdRRC14A7cNKPQ7kTYdN8mQxCaEfkMAoAYY4JKIVbbsJ0YpIe2kcp.png" alt="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 3/2; object-position: 50% 50%;" data-corners="default" data-aspect="3:2" data-caption="The larger the temperate from the better." data-positionx="50%" data-positiony="50%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/28vxVEnGCKTOdRRC14A7cNKPQ7kTYdN8mQxCaEfkMAoAYY4JKIVbbsJ0YpIe2kcp.png" data-mce-style="aspect-ratio: 3/2; object-position: 50% 50%;"><figcaption class="body-normal text-gray-500 mt-2">The larger the temperate from the better.</figcaption></figure><p>This foray into HVAC and thermodynamics serves as a testament to the versatility of a physics education. It underscores how the principles learned within the walls of QUT are not confined to abstract or academic pursuits but are profoundly relevant to tackling contemporary challenges, including those in the burgeoning field of energy management and sustainability.</p><blockquote><p>220, 221, whatever it takes.</p></blockquote><p>Reflecting on this experience, I'm reminded of the startup mantra inspired by the movie quote from "Mr. Mom": "220, 221, whatever it takes." This ethos encapsulates the spirit of adaptability and determination that drives innovation and problem-solving across diverse fields, from energy trading algorithms to the optimization of HVAC systems.</p><h3>Implications for Batteries</h3><p>Reflecting on this journey, I'm also reminded of the broader implications of energy efficiency and management, particularly when it comes to integrating technology like battery storage systems. While a battery can significantly reduce costs associated with peak energy usage, the analogy of a "leaking toilet" comes to mind, emphasizing a fundamental principle of efficiency. If the energy load of a household or facility isn't correctly matched or if inefficiencies like improper HVAC installations are present—akin to energy "leaking" against a retaining wall—then the benefits of advanced solutions can be severely undermined.</p><p>This realization highlights a critical step in the path toward optimizing energy usage: addressing the most substantial inefficiencies first. It doesn't matter how sophisticated an algorithm or technology might be; if foundational issues such as energy leakage or inefficient equipment operation are not rectified, then the potential for savings and efficiency improvements remains untapped. Just as fixing a leaking toilet is a prerequisite to water conservation, rectifying major energy inefficiencies is essential before one can fully leverage the advantages of battery storage or engage in the nuances of energy trading.</p><p>Therefore, the endeavor to optimize energy usage and develop trading algorithms is not just about the application of complex mathematical models or the integration of cutting-edge technology. It is equally about applying a thorough understanding of physical principles and addressing basic inefficiencies that might otherwise go unnoticed. This approach is in line with the startup mantra inspired by "Mr. Mom": "220, 221, whatever it takes." It's a call to action that underlines the importance of adaptability, practical problem-solving, and the willingness to tackle challenges at their root, before venturing into more intricate solutions.</p><figure id="figure-tqp6440uclsifwwql"><img id="tqp6440uclsifwwql" src="https://cdn.durable.co/blocks/4TLSLFAEoJ9u8m5JFaIdQPTCXG2cNziq7MLvMbKKuAv4oL8DqL70GI9wpXEaR12o.png" alt="Solar panels on a lawn" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure><p>As we navigate the intricacies of energy management, sustainability, and technological innovation, this blend of fundamental physics, practical insights, and a holistic approach to problem-solving guides us towards more efficient and effective solutions. It's a testament to the idea that before diving into the "interesting problems," we must first ensure that we're not overlooking the basics—that we're not, in essence, leaking energy "up against the wall."</p>

Bridging Energy Trading Algorithms and HVAC: A Physicist's Unexpected Journey

<p>Today, Queensland launched the new battery rebate program, providing homeowners with the opportunity to access up to $4000 for installing eligible battery systems. This initiative aims to support the adoption of renewable energy and reduce electricity costs for households across the state.</p><h3>Key Details of the Battery Rebate Program</h3><p>The Queensland government has allocated $17 million for the battery rebate program, with eligible recipients receiving a maximum rebate of $4,000 or $3,000. Homeowners who have already installed solar panels can apply for the rebate, as long as they meet the specified criteria.</p><figure id="figure-b688pjerfplsi9vb2j"><img id="b688pjerfplsi9vb2j" src="https://images.unsplash.com/photo-1545303593-6a6d8fea2036?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8cXVlZW5zbGFuZCUyMGJhdHRlcnklMjByZWJhdGV8ZW58MHx8fHwxNzA3NzAyMzE5fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="queensland battery rebate" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1545303593-6a6d8fea2036?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8cXVlZW5zbGFuZCUyMGJhdHRlcnklMjByZWJhdGV8ZW58MHx8fHwxNzA3NzAyMzE5fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Eligibility Requirements</h3><p>To qualify for the rebate, homeowners must have a combined annual household income of less than $180,000. Additionally, the battery system must be installed by a licensed electrician and meet the required safety and performance standards.</p><h3>Benefits of Installing a Battery System</h3><p>By integrating a battery system with their existing solar panels, homeowners can store excess energy generated during the day and use it during peak times or in the evenings. This can lead to significant reductions in electricity bills and greater energy independence.</p><figure id="figure-6qh2n24yjlsi9vc68"><img id="6qh2n24yjlsi9vc68" src="https://images.unsplash.com/photo-1501494278684-d0fb421388ef?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxyZW5ld2FibGUlMjBlbmVyZ3klMjBiYXR0ZXJ5fGVufDB8fHx8MTcwNzcwMjMyMHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="renewable energy battery" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1501494278684-d0fb421388ef?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxyZW5ld2FibGUlMjBlbmVyZ3klMjBiYXR0ZXJ5fGVufDB8fHx8MTcwNzcwMjMyMHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Environmental Impact</h3><p>Encouraging the adoption of battery storage systems contributes to the overall transition to cleaner energy sources, reducing reliance on traditional fossil fuels and lowering carbon emissions. This aligns with Queensland's commitment to sustainability and environmental conservation.</p><h3>Application Process</h3><p>Homeowners interested in applying for the battery rebate can visit the official program <a data-mce-href="https://www.epw.qld.gov.au/about/initiatives/battery-booster-program" href="https://www.epw.qld.gov.au/about/initiatives/battery-booster-program" target="_blank" rel="noopener">website</a> to access detailed information about eligibility criteria, required documentation, and the application process. It's essential to review the guidelines thoroughly and ensure compliance with all requirements.</p><figure id="figure-gc4bgkm79lsi9vd9k"><img id="gc4bgkm79lsi9vd9k" src="https://images.unsplash.com/photo-1605191738062-c861b8afebc1?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMHx8c29sYXIlMjBwYW5lbCUyMGJhdHRlcnklMjBzeXN0ZW18ZW58MHx8fHwxNzA3NzAyMzIyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="solar panel battery system" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1605191738062-c861b8afebc1?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMHx8c29sYXIlMjBwYW5lbCUyMGJhdHRlcnklMjBzeXN0ZW18ZW58MHx8fHwxNzA3NzAyMzIyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Conclusion</h3><p>With the launch of the Queensland Battery Booster Program, there's never been a better time to consider integrating a battery system into your energy solution. However, determining the optimal size for your battery and understanding the return on investment (ROI) it can offer are crucial steps before making a commitment. </p><p>Unlike standard ROI calculations provided by most installers, we offer a unique value by running your specific energy usage patterns through our advanced algorithm. This analysis not only considers typical savings but also evaluates the potential for additional financial benefits when utilizing the battery in conjunction with five-minute spot pricing. The ability to efficiently and profitably use your battery system goes beyond mere installation. By leveraging our expertise, you can ensure that you're making the most informed decision, maximizing both the efficiency and profitability of your investment. </p><p>If you're considering taking advantage of the Battery Booster Program, reach out to us first. Let's ensure you're equipped with the right size battery and a clear understanding of the ROI you can expect, tailored precisely to your energy needs and market opportunities.</p>

Queensland battery rebate launched

<p>In the world of energy management, particularly within the realms of IoT and AI-driven systems, the significance of real-time data and responsiveness cannot be overstated. As someone deeply entrenched in optimizing energy solutions through innovative AI battery management and IoT controls, my journey from Amber Electric to LocalVolts has been nothing short of revelatory.</p><p>Amber Electric, with its half-hour averaging, represented a legacy approach that, while innovative at its inception, increasingly felt misaligned with the capabilities and aspirations of my energy management solutions. The averaging method, rooted in the industry's batch processing mentality, significantly limited the potential of my systems. It was akin to having a high-performance vehicle but being restricted to the slow lane.</p><p>Enter LocalVolts. The transition to a provider that not only follows wholesale spot prices but does so with a granularity that matches the responsiveness of my system, has been a game-changer. LocalVolts’ real-time billing, aligned with the actual five-minute energy market intervals, allows for a battery ROI that Amber could not offer. This change isn't merely administrative; it's transformative.</p><h3>Why Averaging Doesn't Cut It for Battery Systems</h3><p>The crux of the matter lies in the inherent nature of battery energy storage systems. Batteries, with their ability to rapidly respond to changes in energy demand and pricing, are ill-served by averaging methods. Averaging dilutes the very advantage batteries bring to the table – their agility. It's akin to measuring the performance of a sprinter by their day-long average speed; it misses the point of their burst capability.</p><figure id="figure-vggdouoj9lsdtnfc0"><img id="vggdouoj9lsdtnfc0" src="https://cdn.durable.co/blocks/13Uf6iOY0VJ8wMhF2KpWq5JuLJzbhIgq30cEcCX0J8laUEcHP15hHVr9OgsVj2D3.jpg" alt="Graph showing 5 min energy trades" title="Graph showing 5 min energy trades" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 3/2; object-position: 40% 50%;" data-corners="default" data-aspect="3:2" data-caption="Exported close to 1.7kWh at 8.75/kWh at 5:40am" data-positionx="40%" data-positiony="50%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/13Uf6iOY0VJ8wMhF2KpWq5JuLJzbhIgq30cEcCX0J8laUEcHP15hHVr9OgsVj2D3.jpg" data-mce-style="aspect-ratio: 3/2; object-position: 40% 50%;"><figcaption class="body-normal text-gray-500 mt-2">Exported close to 1.7kWh at 8.75/kWh at 5:40am</figcaption></figure><table border="1" style="border-collapse: collapse; width: 100%; margin-left: auto; margin-right: auto;" data-mce-selected="1" data-mce-style="border-collapse: collapse; width: 100%; margin-left: auto; margin-right: auto;"><tbody><tr><td style="width: 25%;" data-mce-style="width: 25%;"><strong>Window</strong></td><td style="width: 25%;" data-mce-style="width: 25%;"><strong>Price ($/kWh)</strong></td><td style="width: 25%;" data-mce-style="width: 25%;"><strong>Export (kWh)</strong></td><td style="width: 25%;" data-mce-style="width: 25%;"><strong>Earnings</strong></td></tr><tr><td style="width: 25%;" data-mce-style="width: 25%;">05:40-05:45</td><td style="width: 25%;" data-mce-style="width: 25%;">$18.75</td><td style="width: 25%;" data-mce-style="width: 25%;">1.7</td><td style="width: 25%;" data-mce-style="width: 25%;">$31.88</td></tr><tr><td style="width: 25%;" data-mce-style="width: 25%;">30min average</td><td style="width: 25%;" data-mce-style="width: 25%;">$3.31</td><td style="width: 25%;" data-mce-style="width: 25%;">1.7</td><td style="width: 25%;" data-mce-style="width: 25%;">$5.67</td></tr></tbody></table><p>LocalVolts, by facilitating a move to true five-minute billing, mirrors the operational efficiency of my battery systems. This alignment means that decisions to charge or discharge are made with the most current price signals in mind, ensuring that energy is stored or used at the most financially optimal times. It’s a level of precision that half-hour averaging cannot hope to match.</p><h3>Faster Switching, Better ROI</h3><p>The core of my work revolves around making AI-informed decisions reach inverters with minimal delay, ideally within seconds of a new five-minute window commencing. This rapid response capability is critical for leveraging fluctuations in energy prices, and here, LocalVolts shines. The provider’s infrastructure and approach to real-time pricing have significantly enhanced the return on investment (ROI) for the battery systems I manage.</p><p>This efficiency is not just about economic gains. It’s about promoting a more sustainable and resilient energy ecosystem. By optimizing the use of stored energy and reducing reliance on the grid during peak periods, we're contributing to a more balanced and less carbon-intensive energy landscape.</p><h3>Early Days, But Promising Horizons</h3><p>It's still early in my transition to LocalVolts, and the full extent of the benefits will become clearer with the first set of bills for the batteries under my control. However, the initial data and operational improvements are promising. The move has underscored a critical lesson: in the rapidly evolving energy sector, the appreciation of one’s skills and solutions is as important as their effectiveness.</p><p>Stay tuned for updates on this exciting journey. The shift to LocalVolts is more than a change of providers; it's a step towards realizing the full potential of AI and IoT in energy management, where every second counts, and every watt matters.</p><h3>Conclusion</h3><p>The transition from Amber Electric to LocalVolts has been a revelation, underscoring the importance of alignment between energy providers and the advanced capabilities of modern energy management systems. As I await the first set of bills with anticipation, one thing is clear: the future of energy management is real-time, responsive, and, most importantly, appreciative of the innovations that drive it forward.</p><p><strong>Update</strong>: August 2024 to include recent peak data from July and user with a new <a title="Hybrid Residential Inverter" href="https://aus.sungrowpower.com/productDetail/3158/power-conversion-system-hybrid-inverter-sh15-20-25t" target="_blank" rel="noopener" data-mce-href="https://aus.sungrowpower.com/productDetail/3158/power-conversion-system-hybrid-inverter-sh15-20-25t">Sungrow SH25T</a> Inverter.</p>

Making the Switch: From Amber to LocalVolts – A Story of Enhanced Appreciation and Efficiency

<p>In the evolving landscape of energy management, the precision of pricing intervals has emerged as a critical factor in determining the efficiency and cost-effectiveness of energy storage solutions. The conventional approach of 30-minute averaged rates, while commonplace, often conceals the nuanced fluctuations of electricity prices and, inadvertently, inflates the financial and physical scale of energy storage needed to counteract these peaks.</p><p>Enter the transformative potential of true 5-minute rates—a game-changer for commercial clients. With the advent of providers offering granular pricing, businesses stand at the cusp of an energy renaissance. This leap in billing precision not only aligns closely with actual consumption patterns but also reduces the need for extensive battery storage, thereby mitigating upfront investment and operational costs.</p><p>As we dissect the mechanics of 5-minute rates and their profound implications for commercial energy users, it becomes increasingly clear that this innovation is not merely an incremental upgrade—it is a pivotal shift towards smarter, more sustainable, and economically sound energy practices.</p><h2>The Evidence in Data: A Visual Comparison of Energy Pricing Strategies</h2><p>The proof, as they say, is in the pudding—or in this case, the graphs. Below, we present a compelling visual comparison of energy pricing and storage requirements over two distinct days. These graphs elucidate the stark differences in battery storage demands when navigating through the lens of 30-minute averages versus true 5-minute rates.</p><figure id="figure-nwwp4xuzbols0x2j8o"><img id="nwwp4xuzbols0x2j8o" src="https://cdn.durable.co/blocks/6wBBtF6uPknp7Ui3TVOutw88OmWubkSAuh7sB0vZRf1N96105IrnzwjEVpK9212v.png" alt="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/6wBBtF6uPknp7Ui3TVOutw88OmWubkSAuh7sB0vZRf1N96105IrnzwjEVpK9212v.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure><p>The graph above represents data from Jan 28th, showcasing the frequency and severity of price spikes within each pricing interval. Notice the pronounced peaks but if you look at the duration and just cover these peaks and not the full thirty minutes they would necessitate a 3x larger battery capacity under a 30-minute averaged rate system.</p><figure id="figure-j0ngn4incls0x3inx"><img id="j0ngn4incls0x3inx" src="https://cdn.durable.co/blocks/33wWpMW9N4SWwp9ZcBPlxdsFjdAXQsLlx7yzt4Xj4ixXaf0wOyDJimHIsymhT5xx.png" alt="Mother and daughter" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/33wWpMW9N4SWwp9ZcBPlxdsFjdAXQsLlx7yzt4Xj4ixXaf0wOyDJimHIsymhT5xx.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>The next day, also demonstrates a similar trend, yet underlines the variability day-to-day. The need for a heftier battery system becomes evident when faced with the pekas that are closer together. Here you would need an even larger battery.</p><p>These visual representations are not mere abstractions; they are a clear indicator of the practical benefits that true 5-minute rates offer. By considering these graphical insights, we can proceed to dissect the quantitative impact on battery sizing and, consequently, the financial implications for energy users.</p><h2>Deciphering the Math: Understanding the Impact on Battery Storage</h2><p>To appreciate the mathematical impact of pricing intervals on battery storage requirements, let's delve into an analogy that resonates with us all – breathing. Consider a 30-minute averaged pricing system as akin to holding your breath for an extended period. Just as your lungs must have the capacity to hold enough air to last through the duration, a battery must have sufficient storage to weather the financial 'peaks' of energy costs averaged over a half-hour.</p><p>In contrast, true 5-minute rates offer the equivalent of being able to take quick breaths more frequently. This flexibility means a battery doesn't need to 'hold' as much energy at once because it can 'exhale' (discharge) and 'inhale' (charge) in alignment with the rapid cadence of price changes. Smaller, more frequent adjustments can be made, which reduces the overall capacity needed to manage energy costs effectively.</p><p>Mathematically, this difference is significant. If a spike in energy cost occurs in the last five minutes of a 30-minute period, the entire period's average price is elevated, akin to the increasing pressure one would feel in the lungs while holding one's breath waiting for relief. However, with 5-minute intervals, only that specific segment's cost rises, which the battery can quickly respond to, just as taking a quick breath relieves the pressure in your lungs.</p><p>To quantify this, imagine a scenario where, over a 30-minute period, prices spike to three times the average cost for just 5 minutes. Under a 30-minute averaging system, the entire period's cost is impacted by that spike, requiring a battery large enough to handle such extremes. Yet, with 5-minute pricing, the battery only needs to cover the cost of that one spike, reducing the required capacity by a factor of six.</p><p>Thus, the 'breath-holding' of 30-minute averages demands a battery with a larger 'lung capacity,' while the 'quick breaths' of 5-minute pricing allow for a smaller 'lung capacity,' making the investment in battery storage far more manageable and cost-effective.</p><h2>The Practical Implications: Battery Size, Cost, and Return on Investment</h2><p>In the practical realm of energy storage, the size of a battery directly influences its cost—not linearly, but exponentially. A battery with triple the capacity often incurs more than double the price due to increased material, manufacturing, and installation complexities. This has a domino effect on the economic viability of the investment.</p><p>To draw from our earlier analogy, just as larger lungs would require more effort and biological resources to operate, a larger battery system demands more financial resources. The implementation of a 30-minute averaged pricing model necessitates these 'larger lungs,' compelling consumers to invest in heftier, more expensive battery systems.</p><p>Moreover, when you factor in the averaging of discharge effects in a 30-minute billing cycle, the return on investment (ROI) becomes less favorable. Each kilowatt-hour of stored energy discharged is diluted across the longer billing period, effectively reducing the value returned from the energy exported back to the grid. This dampening effect prolongs the payback period, extending the ROI timeline by years.</p><p>Conversely, true 5-minute rates allow for a battery that is smaller, more cost-effective, and better aligned with real-time energy consumption and production. The return on each kilowatt-hour of energy is maximized as it directly correlates with the high-price spikes, thereby accelerating the ROI. Consumers can expect a shorter time to recoup their investment and can more readily scale their systems to match their actual energy profiles.</p><p>In essence, 5-minute rates significantly reduce the capital barriers to battery storage adoption, making it a more accessible and economically attractive proposition for a broader range of consumers.&nbsp;</p><h2>Leveraging Fast Price Acquisition and Instantaneous IoT Technology</h2><p>Our commitment to maximizing energy savings goes beyond advocating for fairer pricing structures; it extends into the realm of technological innovation. Recognizing the potential of true 5-minute energy rates, we have dedicated considerable effort to the rapid acquisition of pricing data. By securing access to near-instantaneous Australian Energy Market Operator (AEMO) price updates, we position ourselves at the forefront of reactive energy management.</p><p>But real-time price information is only part of the equation. The true power lies in our ability to act on this information swiftly. To this end, we've harnessed cutting-edge Internet of Things (IoT) technology to create a system that responds in seconds. Our sophisticated IoT setup empowers inverters and batteries to switch modes almost instantaneously, fully capitalizing on the granularity of five-minute pricing.</p><p>This swift responsiveness is made possible through an advanced push-based IoT control system. Rather than waiting for periodic polling, our system is designed to receive and act upon data as soon as it's published. This is akin to a sprinter reacting to the starting gun – every millisecond counts, and our technology ensures we're off the blocks without delay.</p><p>The culmination of these efforts is a seamless integration of data analytics and automated hardware response. This allows for a dynamic interplay between energy storage and grid interaction, optimizing for the best possible financial outcome at any given moment. By implementing these systems, we aim not only to enhance the economic benefits for our clients but also to pave the way for more agile and responsive energy solutions industry-wide.</p><p>The journey towards true 5-minute rates is not just a quest for equitable pricing; it's a showcase of innovation, where fast price acquisition and instant IoT response redefine what's possible in energy management.<br></p><h2>Understanding Retailer Resistance to 5-Minute Pricing</h2><p>While the benefits of 5-minute pricing are clear for consumers, energy retailers like Amber may exhibit reluctance in adopting this model. The reasons for such resistance can be multifaceted. Implementing a 5-minute pricing system requires substantial changes to billing infrastructure, real-time data processing capabilities, and customer service protocols. Retailers must invest in advanced technology to handle the increased volume and velocity of data, as well as ensure their systems are robust enough to support the necessary rapid, automated decision-making processes.</p><p>Furthermore, current business models are structured around longer billing periods. Transitioning to a more granular pricing model might compress profit margins as consumers become better equipped to manage their energy consumption and costs with greater precision. The existing 30-minute average pricing system can be more forgiving for energy retailers, smoothing over the volatility in prices and allowing for a more predictable revenue stream.</p><p>However, it's important to note that on the commercial side of the energy market, larger customers often have access to more sophisticated energy solutions. These solutions, offered by certain providers, already leverage true 5-minute pricing, enabling these customers to optimize their energy usage and costs effectively. Commercial entities frequently have the scale and resources to implement advanced energy management systems that can respond quickly to price changes, giving them a competitive edge.</p><p>This dichotomy between the residential and commercial sectors highlights a disparity in the energy market. While residential consumers may be waiting for retailers to offer true 5-minute pricing, commercial customers are already reaping the benefits, using their leverage to secure favorable terms and technology that capitalize on this advanced billing structure.</p><p>For the market to evolve and for consumers to gain maximum advantage from emerging technologies and pricing models, it's essential for energy retailers to adapt and embrace these changes. Though the transition may be complex and require a reevaluation of traditional practices, the long-term benefits of a more transparent, efficient, and responsive energy system are undeniable.<br></p><h2>A Call to Action: Prioritizing Consumer Needs and Advanced Energy Solutions</h2><p>As we navigate the complexities of the energy market, it becomes increasingly crucial for retailers like Amber to align their priorities with the evolving needs of their customers. The transition to 5-minute pricing is not just a technical upgrade; it is a fundamental shift towards empowering consumers, especially those utilizing battery systems, to manage their energy costs more effectively and efficiently.</p><p>We call upon Amber to reconsider the prioritization of their projects. While the allure of new developments, such as EV integration, is undeniable, there is a pressing need to enhance the core billing infrastructure to support 5-minute pricing. Such an advancement would not only benefit consumers but also position Amber as a forward-thinking leader in the energy sector, capable of attracting a growing demographic of tech-savvy and environmentally conscious customers.</p><p>The implementation of 5-minute pricing is a golden opportunity for energy retailers to demonstrate their commitment to innovation, transparency, and consumer empowerment. It's a chance to invest in a future where energy management is as responsive as it is intuitive, bringing with it a wave of new customers eager to harness the potential of their battery storage solutions.</p><p>For those interested in exploring how IoT technology can be leveraged to navigate the peaks and troughs of energy pricing, we welcome you to reach out. Our team is at the forefront of integrating IoT controls to not only manage but also anticipate energy demands, ensuring your storage systems work smarter, not harder, to lower energy costs.</p><p>Take action with us. Encourage Amber and other retailers to focus on what truly matters—providing the technology and pricing models that reflect the sophistication and capabilities of today's energy solutions. If you're ready to be part of this change and want to learn more about managing energy costs with cutting-edge IoT solutions, <a data-mce-href="https://powston.com.au/contact" href="https://powston.com.au/contact" title="contact us here">contact us here</a>.</p><p>Together, we can reshape the energy landscape for the better.</p>

Unlocking Energy Savings: The Compelling Case for True 5-Minute Rates

<p>In the world of electric vehicle (EV) ownership, effective charging strategies are as crucial as the cars themselves. My journey to optimize EV charging at my home wasn't just a quest for convenience; it was an endeavor to intertwine technology, environmental consciousness, and economic savvy. This is the story of how I developed a dynamic, price-aware On-Board Charger Protocol (OCPP) server, with my hybrid inverter and battery system.</p><figure id="figure-e1kmh24f5blriu8sgs"><img id="e1kmh24f5blriu8sgs" src="https://cdn.durable.co/blocks/28mUWMMHIpyFOO9DawI5byeUe4ay5JL5Jc6169noqKVdl0VO9jUZHtdkDIK8Scs2.png" alt="Average per kWh prices from 2.5c/kWh to 20c/kWh" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 15% 50%;" data-corners="default" data-aspect="16:9" data-caption="Average cents per kWh to charge my EV by date" data-positionx="15%" data-positiony="50%" data-mce-src="https://cdn.durable.co/blocks/28mUWMMHIpyFOO9DawI5byeUe4ay5JL5Jc6169noqKVdl0VO9jUZHtdkDIK8Scs2.png" data-mce-style="aspect-ratio: 16/9; object-position: 15% 50%;"><figcaption class="body-normal text-gray-500 mt-2">Average cents per kWh to charge my EV by date</figcaption></figure><p><br></p><h3>The Challenge: Balancing Charging Needs with Cost and Capacity</h3><p>Living in an era where EVs are more than just a trend, I faced the common dilemma of every EV owner: how to charge my car efficiently without breaking the bank or overloading my home's energy system. Initially, I set hard limits on electricity prices for charging, but this often left my EV undercharged, driving me into the arms of public fast-charging stations and queues of Uber drivers and grey nomad EV enthusiasts.</p><p>My home, equipped with solar panels, is a net energy importer. While I do manage some energy export, it usually occurs at night during peak energy rates. I realized that a more dynamic, intelligent approach was needed to leverage lower energy prices while avoiding high-demand periods.</p><figure id="figure-j6bab8gylslritzau5"><img id="j6bab8gylslritzau5" src="https://images.unsplash.com/photo-1593941707882-a5bba14938c7?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw0fHxldiUyMGNoYXJnaW5nJTIwc3RhdGlvbnxlbnwwfHx8fDE3MDU1NTkzMTZ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="ev charging station" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1593941707882-a5bba14938c7?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw0fHxldiUyMGNoYXJnaW5nJTIwc3RhdGlvbnxlbnwwfHx8fDE3MDU1NTkzMTZ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>The Solution: A Dynamic, Price-Aware OCPP Server</h3><p><strong>Integrating OCPP with my Hybrid Inverter and Battery:</strong> My first step was integrating a price-aware OCPP server with my existing hybrid inverter and battery setup. This integration allowed me to manage charging based on real-time energy prices and my home's energy production and consumption patterns.</p><p><strong>Rule-Based Charging Strategy:</strong> My strategy was governed by four cardinal rules:</p><ol><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><ul><li>Avoid charging from the home battery.</li><li>Prevent overloading and tripping the pole fuse.</li><li>Cease charging during unexpected peak price events.</li><li>Prioritize charging from free or the cheapest available power sources.</li></ul></li><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><strong>Dynamic Price Adjustments:</strong> The system was programmed to adjust to fluctuating energy prices dynamically. It responded to lower tariffs by increasing charging and vice versa, ensuring the EV was charged at the most economical rates without exceeding the home's energy capacity.</li><li style="list-style-type: none;" data-mce-style="list-style-type: none;"><strong>Smart Energy Management:</strong> The system also monitored solar production, home energy consumption, and grid tariffs. This holistic view enabled smart decisions, like harnessing solar energy for charging during peak production hours or tapping into the grid when prices dipped.</li></ol><h3>The Outcome: Efficient Charging and Economic Benefits</h3><p>The results were encouraging. My EV was consistently charged without any inconvenience, and I managed to average around 11c/kWh — significantly lower than the standard rates of around 25c/kWh. This system not only provided financial benefits but also contributed to a more sustainable energy consumption pattern.</p><figure id="figure-4k7q09s3llritzcim"><img id="4k7q09s3llritzcim" src="https://images.unsplash.com/photo-1622534138722-895a7deb9f49?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw1fHxzbWFydCUyMGNoYXJnaW5nJTIwdGVjaG5vbG9neXxlbnwwfHx8fDE3MDU1NTkzMTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="smart charging technology" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1622534138722-895a7deb9f49?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw1fHxzbWFydCUyMGNoYXJnaW5nJTIwdGVjaG5vbG9neXxlbnwwfHx8fDE3MDU1NTkzMTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Future Perspectives</h3><p>This project isn't just a personal victory; it's a prototype for future smart charging systems. It demonstrates the potential of integrating renewable energy sources with smart technology to optimize EV charging. I have started to seek out additional testers so as the product matures, I can add more users. As we move towards a more electrified future, such systems could become standard, providing a seamless, eco-friendly, and cost-effective solution for EV charging.</p><p><br></p><figure id="figure-4bki64fk6plritzdve"><img id="4bki64fk6plritzdve" src="https://images.unsplash.com/photo-1704475067471-9d73f44bb3bb?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw3fHxldiUyMGNoYXJnaW5nJTIwdGVjaG5vbG9neXxlbnwwfHx8fDE3MDU1NTkzMjB8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="ev charging technology" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1704475067471-9d73f44bb3bb?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw3fHxldiUyMGNoYXJnaW5nJTIwdGVjaG5vbG9neXxlbnwwfHx8fDE3MDU1NTkzMjB8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>In Conclusion</h3><p>My journey is a testament to the power of innovation in addressing practical challenges in the EV ecosystem. By leveraging technology and adaptive strategies, I've managed to create a system that not only serves my needs but also sets a precedent for future developments in smart, sustainable EV charging.</p>

Harnessing Smart Charging: My Journey to a Dynamic, Price-Aware EV Charging Solution

Powston

Powston is an Australian energy technology company transforming how households and businesses use and profit from renewable energy. Our AI-driven platform and plug-and-play controller connect batteries, solar, and smart devices directly to the 5-minute wholesale energy market. This lets customers cut their electricity bills, optimise consumption, and even earn revenue—without relying on traditional retailers or Virtual Power Plants.
With integrations across leading brands like Sungrow, SAJ, iStore, Powston empowers users with real-time energy monitoring, cost optimisation, and automation tools for appliances, EVs, and backup planning.
Headquartered in Brisbane, Powston is committed to building a more sustainable future by enabling everyday Australians to reduce environmental impact while achieving financial independence from power bills

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