The Australian Renewable Energy Agency (ARENA) has awarded $176 million in conditional funding to eight grid-scale battery projects across Australia.
Funded under ARENA’s Large Scale Battery Storage Funding Round, each battery will be equipped with grid-forming inverter technology, allowing them to provide essential system stability services traditionally provided by synchronous generation such as coal and gas.
With a total project value of $2.7 billion and a capacity of 2GW/4.2GWh, these projects represent a tenfold increase in grid-forming electricity storage capacity currently operational in the National Electricity Market.
Related article: Energy ministers agree to renewable energy storage scheme
The developers and projects ARENA has selected for support are:
- AGL: a new 250MW/500MWh battery in Liddell, NSW
- FRV: a new 250MW/550MWh battery in Gnarwarre, Vic
- Neoen: retrofitting the 300MW/450MWh Victorian Big Battery in Moorabool, VIC to enable grid-forming capability
- Neoen: a new 200MW/400MWh battery in Hopeland, Qld
- Neoen: a new 200MW/400MWh battery in Blyth, SA
- Origin: a new 300MW/900MWh battery in Mortlake, Vic
- Risen: a new 200MW/400MWh battery in Bungama, SA
- TagEnergy: a new 300MW/600MWh battery in Mount Fox, Qld.
The eight successful projects were chosen from a shortlist of 12 projects announced in July. ARENA received 54 expressions of interest for the competitive funding round.
ARENA CEO Darren Miller said the batteries represent a transformative portfolio of new storage capacity.
“Battery storage is an essential technology in the transition to renewable energy, allowing us to smooth out variable generation and store electricity for when it’s needed,” Miller said.
“These next generation grid-scale batteries will underpin this transition, with inverter technology that can maintain grid stability without the need for coal and gas generators. This pipeline of grid-forming projects will help move us closer to an electricity grid that can support 100 per cent renewable energy in the NEM.
With the high quality of proposals we received, ARENA and the Government saw an opportunity to deliver a step change in grid-forming capability across the NEM, which we’ve backed with additional funding.”
Related article: Sapphire battery to connect to NSW’s largest wind farm
ARENA has previously provided $81 million in funding for eight grid scale batteries, including five with grid forming capability at a smaller scale. The 150MW/194MWh Hornsdale Power Reserve in South Australia, which received ARENA funding for its 2019 expansion, is currently the largest grid forming battery in Australia.
The previous projects have highlighted the potential of grid-forming batteries and the need to support further projects at a larger scale to build experience with the technology, de-risk investment and drive further innovation from inverter manufacturers. The funding round will also help to overcome current commercial and regulatory barriers to large scale deployment.
All the batteries are expected to reach financial close in 2023 and be operational by 2025.
