Big news for big storage with the development of a new large-scale battery designed to demonstrate how energy storage can strengthen South Australia’s grid and potentially lower energy prices. ARENA is providing up to $12 million in funding toward the 30 MW, 8 MWh battery at the Dalrymple substation on the Yorke Peninsula west of Adelaide.
ARENA chief executive Ivor Frischknecht notes “This is the first large-scale grid-connected battery to be designed, built and commercially operated in Australia largely with private investment from energy providers.”
The battery is the second phase of the Energy Storage for Commercial Renewable Integration (ESCRI) project and is expected to cost around $30 million and be operational as soon as February 2018.
By way of explanation: ESCRI Phase 1 consisted of a study into the potential for energy storage to benefit the South Australian network and allowed ‘key aspects’ of a utility scale battery, such as revenue generation, to be thoroughly planned ahead of the announcement.
Frischknecht said the ESCRI battery would make an important contribution to security and reliability of supply in the context of high renewable energy generation in South Australia.
“It may not be the biggest battery in the world, but pound-for-pound it will pack a big punch in demonstrating how utility scale storage can contribute to a stronger South Australian energy network.”
The ESCRI project will demonstrate how utility scale battery storage could help contribute to a more secure, reliable and affordable electricity system.
Specific benefits include:
– Supplying Fast Frequency Response (FFR), which helps balance the electricity network, particularly in the context of increased levels of renewable energy generation. This capability will also be used to help reduce operating constraints on the Heywood interconnector with Victoria which, in turn, has the potential to place downward pressure on wholesale energy prices in SA.
– Providing contingency power for the Dalrymple service area during a loss of supply. The islanded battery will work together with the existing 90 MW Wattle Point wind farm and rooftop solar PV in a microgrid to provide backup local supply until connection to the grid is restored.
– Demonstrating that utility scale batteries can aggregate and “value stack” multiple revenue streams and deliver both regulated network services and competitive market services, thereby encouraging other energy developers to enter the market with battery projects.
ESCRI will be one of the largest batteries in the world, in terms of MW capacity, behind the Tesla/Neoen battery.
ESCRI will complement the 100MW State-funded battery to be built at Hornsdale by Telsa and Neoen, recently announced by the South Australian Government.
“Battery storage is a key enabler as we transition to an energy system powered by variable renewable energy like wind and solar,” Frischknecht said.
“Australia is now a leader in demonstrating the potential of large-scale battery technology to facilitate high levels of renewable energy penetration. This project will complement the Hornsdale battery and other ARENA-funded grid support projects to help deliver reliable and secure electricity in South Australia.”
The project will be procured and maintained by transmission provider ElectraNet, which is in discussions with potential energy retail operators to provide market services.
Consulting firm Advisian has supported the development of the project from its inception and will play a key role in delivering the knowledge sharing plan to maximise industry learning.
The South Australian government is powering up on renewables with the 100 MW storage plant at the Hornsdale wind farm in partnership with Tesla and the 150 MW solar thermal plant (as reported elsewhere in this bulletin).
In the process, Premier Jay Weatherill has had to shrug off negative remarks by the coalition along the lines of “experimenting with [renewable] technology”.