[lysp]

In Australia's energy market, power generators participate in a bidding system managed by the market operator. Generators submit bids specifying how much electricity they can provide (in megawatts), at what price, for specific time periods.

The market operator (AEMO) then selects the lowest bids to meet current electricity demand.

Fossil fuel generators in the past have artificially limited their available capacity and also submitted intentionally higher priced bids. This maintained higher electricity prices and increased their profits.

When grid scale batteries started entering the market, they were able to provide electricity at lower cost, submitting price competitive bids. This forced fossil fuel generators to either lower their prices or risk losing market share.

Over the last year or so, fossil fuel companies began investing in their own battery storage systems. But instead of bidding competitively with their batteries, these companies submit higher bids than independent battery operators. This is an attempt to help them maintain artificially elevated market prices and protects their traditional fossil fuel business model.