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· Posted on
February 21, 2024

Origin Energy is amped up after realising you can be sustainable and profitable at the same time with whopper batteries

Origin Energy is planning to build a large-scale battery in every state of the National Electricity Market.

What's the key learning?

  • Origin's idea is to copy and paste huge batteries across parts of Australia, and they plan to use these to profit from the energy market's volatility.
  • For professional investors, volatility shouldn't be feared but actually embraced as an opportunity to profit.
  • With these new batteries, Origin can purchase a heap of electricity during cheaper periods, store it in their batteries and sell them at the fixed cost to customers.

👉 Background: Origin Energy is one of the leading providers in Australia of electricity and gas. Since the 1960's, they've grown into a beast of a company - we're talking over 4 million customers.

👉 What happened: Now, Origin is planning to build a large scale battery in every state of the National Electricity Market. And it's already committed to a $600 million deal to develop a whopper battery at a coal-power generator site in NSW.  

👉 What else: The idea is to copy and paste huuuuge batteries across parts of Australia... And it ain't just sustainable - Origin plans to use these batteries to profit from the energy market's volatility.

What's the key learning?

💡For professional investors, volatility shouldn't be feared... but actually embraced as an opportunity to profit.

💡Even though most of us get our electricity bill at a flat rate, electricity prices can change massively throughout the day.

  • Wholesale market: Depending on the amount of sun and wind, Origin might pay 1 cent/kWh on the wholesale market. Or alternatively, they may pay 60 cents/kWh.
  • Retail market: Generally, as a consumer, you pay a flat rate of ~30 cents/kWh.

💡With these new batteries, Origin can purchase a heap of electricity during cheaper periods, store it in their batteries and sell them at the fixed cost to customers. Buy low, sell high.

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