EN E RGY STOR AGE
AUSTRALIA’S BIG BATTERIES:
NEW STORAGE TO MATCH THE RISE OF RENEWABLES
Battery storage systems are vital assets for stabilising energy generation during the national energy transition, and a robust stock of storage assets might serve as the best insurance policy for any network powered by renewables.
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round the country, utility-scale batteries are gaining traction, with newly delivered assets including one of the largest batteries seen globally – the Victorian Big Battery. Indeed, the national battery sector is expected to reach new heights this year, with independent energy consultancy Rystad predicting that utility-scale battery capacity will double. Here we offer a comprehensive assessment of the big battery projects shaping Australia’s energy storage future: from major operational batteries, to those under construction, newly approved, or ambitiously proposed. Australia’s energy networks are evolving, and lithium-ion battery storage projects will help ensure our national energy transition is both manageable and secure. The costs associated with grid-scale battery storage technologies have significantly decreased over the last decade, while battery storage capabilities continue to grow rapidly, resulting in a much improved economic case for large-scale battery projects. As a result, governments and private companies are investing in an ever-increasing number of big batteries to expand network storage capabilities. Large-scale, grid-connected battery systems are expected to play an important role in Australia’s energy future, with a growing number of large storage projects planned or underway, acting to both smoothen renewable generation and offer network contingency.
WHY WE NEED BATTERIES: MATCHING THE RISE OF RENEWABLES The Australian Energy Market Operator (AEMO) has predicted that 63 per cent of coal-fired generation will retire by 2040, making way for 26-50GW of renewable energy generation across wind and solar (2020 Integrated System Plan). But this rise of renewables must be matched by up to 19GW of ‘firming’ generation assets, such as battery storage and pumped hydro, that are dedicated to supplying energy during times of poor renewable generation. Integrated into the National Electricity Market (NEM), big batteries will help stabilise networks and pave the way for increased renewable generation, allowing states and territories to make sustainable and safe progress on renewable energy targets.
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Large-scale energy storage, such as Battery Energy Storage System (BESS), offers a range of important benefits to electricity grids, from responding to fluctuations in renewable energy generation to managing frequency disruptions. Batteries can be used for energy market participation, load shifting, and providing various market and non-market ancillary services to the NEM. As a result, batteries can help mitigate costs and suspend the need for additional generation infrastructure, or network upgrades to meet peak demand. Further, battery peakers can ramp up quickly, have near zero start-up time and provide a strong frequency response.
NOW SHOWING: OPERATIONAL BIG BATTERY PROJECTS Victorian Big Battery (300MW/450MWh), VIC Launched in December 2021, the Victorian Big Battery is both the largest operational battery in Australia and one of the world’s largest batteries to date. The 300MW/450MWh BESS, built and operated by Neoen, is located in Geelong. The battery will be instrumental in helping Victoria reach its target of 50 per cent renewable energy generation by 2030. The Federal-owned Clean Energy Finance Corporation (CEFC) has provided $160 million towards its construction. The Victorian Government will pay $84.8 million over 11 years for the services provided by the BESS, which should alleviate unscheduled load shedding over the peak summer months. The project experienced a setback in July 2021, when a fire occurred at two of the Tesla Megapack BESS units during testing. Works resumed with the approval of the safety regulator after measures were put in place to prevent recurrence. Hornsdale Power Reserve (150MW/193.5MWh), SA With a capacity of 150MW/194MWh, Hornsdale Power Reserve is currently the second largest operational battery in Australia. The battery is owned by Neoen and co-located with the Hornsdale Wind Farm in mid-north South Australia. When the original $172 million construction project was completed in 2017, it was the largest lithium-ion battery in the world at 100MW/129MWh. In 2020, an $82 million expansion project was completed, increasing the storage capacity by 50MW/64.5MWh to a total of 150MW/193.5MWh. The installation is based on Tesla battery technology.
