Mr. Paul Blount:

Distributed storage helps because if we can distribute the projects to a variety of nodes on the system, we are effectively creating more space on the transmissions grid in all of the locations where that is deployed. There are two different versions of that question. For example, 10 MW of 100 hours is 1 GW hour. That is a lot of energy in one place. It is very valuable to have 50 MW or 100 hours in different nodes on the system. We could achieve the same energy capacity by, for example, having 200 MW of four-hour storage. A much shorter duration provides the same energy capacity.

Ultimately, it is a techno-economic project that the auction design we are describing solves. The 250 MW four-hour storage has the same energy capacity. It has a lot of benefits in terms of the extra power that it provides for that short period, but it comes at a cost. The capital cost associated with that might be a lot higher. If we get the auction design right, the auction solves that problem and answers the question of which combinations of different technologies with different deficiencies, energy capacities and locations represents the most effective decarbonisation solution. That is why we keep bringing this back to getting the auction design right. If we do that, we send all of the right signals, get all of the right incentives and get the best solutions and the best places on the grid at the right scale. I hope that answers the question on how to distribute the solutions.