Short version: the Australian energy market is a mess and was being gamed by a small (2 or 3) number of operators of gas peaking plants who were driving the spot price up to several orders of magnitude higher than normal wholesale prices. The battery by simply existing cut the ability of these operators to game the market as heavily, because they could only bid up to the floor price the state government had set for the battery to bid in at.

This is direct state interference in a competitive market so the “floor” is still quite high. With more private operators entering the market the ability to game the system will be eroded further since everyone wants to get the easy money.

The savings were mostly due to cutting the fat out of the market gouging practices. No/little change to actual supply occurred.

Your point is valid, the 40M would have went elsewhere in the market. I still think it's arguably better to not be wasting fuel and contributing pollution, and that preventing the disproportionate flow of money from utility consumers to operators is a side benefit... but that's debatable and a very socialist opinion.

There's nothing socialist about squeezing inefficiencies out of a market. It's what well functioning markets are for, after all. From what I understand the Australian energy market is a long way from well functioning, with a few small players holding the system to ransom.

Socialism would be hitting those guys with a big regulatory stick, or shutting them down for just providing a service. Not all state expenditure is socialist. Were monarchies involving heavy state domination of the economy socialist? No, and neither necessarily are liberal democracies with a state sector, especially if that state sector is exposed to market forces.

It's really annoying that so many mentions of socialism or capitalism on HN get the basics wrong. These terms have perfectly good established meanings that are actually quite specific.

The only inefficiency is that they're burning a consumable to provide the electricity during peak. The rest (likely a good part of the that 40M) is going back into the economy in one way or another (construction of the peaking plants, operators margins, jobs, suppliers of consumables, taxes on consumables, taxes on profits, etc) - provided that those funds don't leave the country it should be very near to a net neutral cash flow for the local economy, only that the battery keeps more in the consumers pockets vs the utilities', hence my socialist comment - moving money from corporations to consumers. If you consider that the energy for the battery ultimately comes from the same grid, and that grid is not entirely renewable, then it's power in all probability also consumed some fuels (70% of Australia's power comes from coal I think).

So: Australia is sunny and it's consumption peaks generally follow the temperature due to air conditioning - so build more solar and pair it with more storage (batteries) instead of investing in coal and gas burning.

> hence my socialist comment - moving money from corporations to consumers.

Thats is such a bizarre comment. No corporation has a right to make money, they have to earn it by providing a valuable service. If that service can be provided more efficiently another way, tough. That's what market forces are all about.

Yes the energy company commissioning the battery is publicly owned. You could squint and see some socialism in that. I've no argument there. However it's doing this because it is exposed to market forces, and overspending on peak power provision. Characterising responding to that market stimulus with capital investment is I think going a step too far.

Look at it another way. Is exposing public companies to market forces and having them react to those stimuli more socialist than protecting them from markets, or less socialist? Is it closer to pure capitalism or further away?

How is wanting to save your citizens money debatable?