Bell Batteries

Bell Batteries​

Lithium-ion Grid & EV Charging Battery Storage Facilities

Bell Batteries

Bell Batteries is an Australian lithium-ion battery storage company that is focused on providing Grid and EV Charging energy supply across Australia to Bell’s EV Charging Stations & Destination Facilities and the national power grid. Established in 2019, Bell Batteries is a wholly owned subsidiary of Bell Resources.

Lithium-ion Grid & EV Charging Battery Storage Facilities

Bell Batteries is building a capacity to operate large multi-site lithium-ion battery storage facilities across Australia. The company plans to connect these facilities to its close proximity renewables and Bell’s ultra-fast EV charging stations to meet consumer demand for electricity in the short to medium term.

The battery storage facilities will be located in metropolitan and regional areas. This will allow Bell Batteries to provide a reliable source of power to a wide range of customers.

The company’s plans are in line with the growing demand for renewable energy and electric vehicles. By storing energy from renewable sources, Bell Batteries can help to stabilize the grid and meet the needs of consumers who are switching to EVs.

Energy storage batteries can help to address the intermittency issues associated with renewable energy sources. By storing excess renewable energy generated during peak times, energy storage systems can power EV charging stations during periods of low renewable energy production or high charging demand. This provides a more stable and reliable energy supply for both EV charging and grid power.

NEM Spot Price Market and Arbitrage Opportunity

The Australian Energy Market Operator (AEMO) operates the National Electricity Market (NEM), which is the wholesale electricity market for the whole of mainland Australia, except for Western Australia. The NEM spot price is the price of electricity at any given time. The spot price can be volatile, meaning it can fluctuate significantly over short periods of time. This volatility can create arbitrage opportunities for businesses that own lithium-ion grid battery storage facilities.

Arbitrage is the practice of buying an asset in one market and selling it in another market at a profit. In the case of lithium-ion grid battery facilities, Bell Batteries can buy electricity at a low price during off-peak hours when the price is low, and then sell it at a higher price during peak hours when the spot price is high. This can be a profitable strategy because the difference between the off-peak and peak prices can be significant. 

In October 2021, AEMO implemented a new rule change that changed the frequency of spot price calculation in the NEM from every 30 minutes to every 5 minutes. This change, called Five Minute Settlement (5MS), was implemented to provide a better price signal for investment in fast-response technologies and to make the market more efficient. The new rule also set the price limit for the NEM spot price at $15,500 per megawatt hour. This means that the price of electricity cannot go above this level, even if demand is very high. 

Bell Batteries intends to trade on the NEM spot price market by using its lithium-ion grid battery storage facilities to store electricity during off-peak hours when the price is low. The company then sells the stored electricity back to the grid during peak hours when the spot price is high. This allows Bell Batteries to profit from the difference between the off-peak and peak prices.

Renewables and the Grid's Need for Lithium-ion Battery Storage Facilities

The growth of renewable energy sources is driving the demand for lithium-ion grid battery storage facilities. Renewable energy sources, such as solar and wind power, are intermittent, meaning they do not produce electricity all the time. This can lead to problems on the grid, such as blackouts and brownouts. Lithium-ion grid battery storage facilities can help to solve these problems by storing excess electricity during times of high production and then releasing it during times of low production. This helps to ensure that there is always enough electricity available to meet demand, even when renewable energy sources are not producing at their full capacity.

Lithium-ion grid battery storage facilities are becoming more affordable and accessible as the cost of lithium-ion batteries falls. This is making them a more attractive option for utilities and other organizations that are looking to integrate more renewable energy into their operations. As the demand for renewable energy continues to grow, the need for lithium-ion grid battery storage facilities is expected to grow as well.

Adoption of EVs and Increase Demand on the Grid

The increasing adoption of electric vehicles (EVs) is putting a strain on power grids, especially during peak charging times. EVs typically charge in the evening, when people return home from work and school. This coincides with the time when electricity demand is already high, as people are using appliances such as air conditioners, heaters, and ovens.

To address this challenge, a number of countries have placed extra tariffs for EV drivers charging during peak power demand. As the number of EVs on the road continues to grow, it is likely that more countries will adopt similar measures.

Bell Batteries is developing Lithium-ion Grid & EV Charging Battery Storage Facilities to address the challenges of electric vehicle charging. These facilities will store energy during off-peak hours and release it during peak hours, helping to balance the grid and reduce strain on power lines.

The market opportunities for Bell Batteries are significant. As the adoption of EVs increases, so too will the demand for Bell’s Lithium-ion Grid & EV Charging Battery Storage Facilities.