Fluence has secured approximately 1.5 GW of new wind, solar and battery energy storage contracts for its AI-powered Trading Platform in Australia in just seven months since it acquired AMS. The new contracts, with customers including Spark Renewables (part of the Spark Infrastructure Group) and BJCE, bring the total number of assets using the algorithmic trading and bidding optimization platform to over 3.4 GW (contracted or deployed). This includes operating assets representing roughly 18% of all grid-scale wind and solar capacity in the Australian National Electricity Market (NEM) as well as one of the largest battery-based energy storage assets in the world in California.
Australia’s NEM is one of the most complex energy markets in the world, with energy and ancillary services requiring assets to trade at 5-minute intervals while integrating ever-higher amounts of variable renewable energy penetration. Renewable asset owners in the NEM – and in other electricity markets around the globe – face multiple challenges, including forecasting of volatile energy prices, anticipating network constraints, co-optimizing across markets, and managing trading strategies, to name a few. The Fluence Trading Platform analyses thousands of variables to provide leading price forecasting and optimisation using proprietary machine learning algorithms. The resulting market-compliant bids can increase revenue for wind and solar asset owners by up to 10% over a 12-month period.
“Trading renewables and energy storage in merchant markets is now so complex that it requires AI-based software to manage decision-making,” said Seyed Madaeni, Chief Digital Officer at Fluence. “Sophisticated bidding and optimisation software not only provides powerful tools to complement trading desk operations and increase asset revenue but also supports greater efficiency at the grid level by improving the operation and dispatch of renewable and storage assets.”
Fluence’s Trading Platform can integrate with battery energy storage systems from any OEM or technology provider, as well as a range of renewable energy assets, including wind and solar. This flexibility enables Fluence to provide more value to a broader set of customers, optimising portfolios of diverse assets and accelerating the adoption of renewables and energy storage, either separately or together.
In California, Fluence recently announced that Pacific Gas & Electric selected the Trading Platform to optimise the dispatch of its 182.5 MW/730 MWh Moss Landing battery in the CAISO energy market. Optimal charging and discharging of a battery system that can provide multiple grid services and energy and ancillary services requires hundreds of thousands of decisions within the space of a few minutes – far more complex than that of renewable energy assets. Fluence’s Trading Platform solves this problem by incorporating advanced forecasting, identifying the optimal asset dispatch based on customer preferences and risk tolerance, and translating that into real-time market operator bids. In addition, the AI-enabled software incorporates detailed reporting of forecasts, market behaviour, bids, revenue and asset performance to inform future bidding and continually improve accuracy.
The significant momentum of the Fluence Trading Platform in the NEM and CAISO speaks to the high demand from customers for technology to manage real-time bidding of increasingly complex portfolios of assets.
Image source: Courtesy of Fluence
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