Australia to Provide $118 Million for Battery Projects Across the Country
Batteries to come equipped with inverter technology to stabilize the grid
December 19, 2022
The Australian Renewable Energy Agency (ARENA) announced A$176 million (~$118 million) in conditional funding to support eight grid-scale battery projects across the country.
With a total project value of A$2.7 billion (~$1.8 billion) and a cumulative capacity of 2 GW/4.2 GWh, the projects represent a tenfold increase in grid-forming power storage capacity, which is currently operational in the National Electricity Market (NEM).
Each battery in the projects will be equipped with grid-forming inverter technology, which will provide system stability services traditionally provided by synchronous generation from coal and gas-based generation.
The initial funding envelope of $100 million was later revised upwards in view of the high-quality application received by the Australian government.
ARENA received 54 expressions of interest for the competitive funding round after shortlisting 12 projects announced in July, in which it chose the eight developers and projects which are:
- Two 250 MW/ 500 MWh battery systems to be developed by AGL and FRV in Liddell, New South Wales, and Gnarwarre, Victoria
- Paris-headquartered Neoens’ retrofitting of the 300 MW/ 450 MWh Victorian Big Battery in Moorabool, alongside two other 200 MW/ 400 MWh batteries in Hopeland, Queensland, and Blyth, South Australia, both being undertaken by Neoen
- Origin will develop a new 300 MW/ 900 MWh battery in Victoria’s Mortlake
- Risen to develop a 200 MW/ 400 MWh battery in South Australia
- TagEnergy is developing a new 300 MW/ 600 MWh battery in Queensland’s Mount Fox, which is a dormant volcano in the region.
All the batteries are expected to reach a financial close in 2023 and be operational by 2025.
ARENA CEO Darren 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% renewable energy in the NEM.”