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ISSN 2753-7757 (Online)

New grid-scale battery projects in Australia receive financial backing

11/1/2023

News

Aerial view over Hornsdale Power Reserve showing rows of battery units in foreground and wind tubines in distance Photo: CEFC
The 150 MW/194 MWh Hornsdale Power Reserve in South Australia, which received ARENA funding for its 2019 expansion, is currently the largest grid forming battery in Australia

Photo: CEFC

The Australian Renewable Energy Agency (ARENA) has announced $176mn in funding to eight grid-scale battery projects across Australia.

With a total project value of $2.7bn and a capacity of 2 GW/4.2 GWh these projects represent a 10-fold increase in grid-forming electricity storage capacity currently operational in Australia’s national electricity market.

 

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.

 

The developers and projects ARENA has selected for support are: 

  • AGL – a new 250 MW/500 MWh battery in Liddell, New South Wales. 
  • FRV – a new 250 MW/550 MWh battery in Gnarwarre, Victoria. 
  • Neoen – retrofitting the 300 MW/450 MWh Victorian Big Battery in Moorabool, Victoria, to enable grid-forming capability. 
  • Neoen – a new 200 MW/400 MWh battery in Hopeland, Queensland. 
  • Neoen – a new 200 MW/400 MWh battery in Blyth, South Australia. 
  • Origin – a new 300 MW/900 MWh battery in Mortlake, Victoria. 
  • Risen – a new 200 MW/400 MWh battery in Bungama, South Australia. 
  • TagEnergy – a new 300 MW/600 MWh battery in Mount Fox, Queensland.

 

The Large-Scale Battery Storage Round was launched in December 2021 with an initial funding envelope of $100mn. In recognition of the high quality of applications received, this was expanded to $176mn, including $60mn in additional funding provided by the Australian government in the October 2022 budget.

 

Darren Miller, Chief Executive Officer, ARENA, says: ‘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. 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.’

 

All the batteries are expected to reach financial close in 2023 and be operational by 2025.