🇦🇺Australia

Cost Overrun in Fossil Fuel Load Following

2 verified sources

Definition

Battery storage investments highlight the high cost of fossil fuel dispatch to smooth renewables; fossil plants face overrun from inefficient operation during transition.

Key Findings

  • Financial Impact: AUD 2.4 billion per quarter in energy storage to offset fossil dispatch costs (equivalent fossil overrun avoidance)[2]
  • Frequency: Quarterly during transition peaks
  • Root Cause: Idle equipment and rush fossil fuel usage due to dispatch bottlenecks

Why This Matters

The Pitch: Fossil Fuel Electric Power Generation wastes AUD 2.4 billion quarterly on battery alternatives for load following inefficiencies. Automation reduces reliance on costly fossil ramping.

Affected Stakeholders

Fuel Procurement, Operations Engineers, Compliance Officers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Capacity Loss from Unit Dispatch Inefficiencies

AUD 90 billion capital over 10 years for grid firming and dispatch upgrades; 1.5 GW additional storage needed quarterly at AUD 1.5 billion per quarter[1][2]

Safeguard Mechanism Non-Compliance Fines

AUD 22,520 per tonne of excess emissions (base penalty escalating with multiple breaches)

Manual ACCU Trading and Compliance Costs

AUD 50,000-100,000 annually per facility in labour (200-400 hours at AUD 250/hr)

Reportable Priority Waste Non-Compliance

AUD 297,663 max fine per breach (300 penalty units x AUD 992.25 as of 2025); plus permission fees AUD 1,000-5,000/site.

Ash Disposal Landfill and Compliance Costs

20-40 hours/month manual reporting per site; landfill tipping fees AUD 100-200/tonne for non-reused ash.

Cost Overruns in Capital Project Budgeting

AUD $90 billion capital required over next decade; typical overruns 20-30% on delayed projects due to approval bottlenecks

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