(Credit: Arena)A $117.5 million funding project has been announced by the Australian government, which it expects will unleash almost $3 billion of investment in advanced battery technology, allowing better grid-forming capability across the National Electricity Market.
This investment will deliver eight large-scale batteries with a combined 2 GW/4.2 GWh of storage capacity to balance the National Electricity Market (NEM) to help Australia transition from coal-fired power to renewables. Funded through the government-owned Australian Renewable Energy Agency’s (ARENA) Large Scale Battery Storage Funding Round, each battery will be equipped with grid-forming inverter technology, allowing them to provide system stability services traditionally provided by synchronous generation such as coal and gas.
System strength services and inertia have historically been provided by baseload coal and gas power plants, but ARENA Chief Executive Officer Darren Miller said grid-forming technologies could provide the necessary substitute as the penetration of variable, renewable energy increases.
The funding will see seven new batteries developed across New South Wales, Queensland, Victoria and South Australia. The batteries range from 200 to 300 MW each and will provide virtual inertia and system strength services to the grid.
With a total project value of about $2.7 billion and a combined capacity of 2.0 GW/4.2 GWh the projects represent a ten-fold increase in grid-forming electricity storage capacity currently operational in the NEM.
The Large Scale Battery Storage Round launched in December 2021 with an initial funding envelope of $100 million. In recognition of the high quality of applications received, this was increased, to include additional funding provided by the Australian Government in the October 2022 budget. Part of the Government's Support for Energy Security and Reliability budget measure.
Miller said the batteries represent a transformative portfolio of new storage capacity and will help underpin the transition to renewable energy in Australia. And added that the need to smooth out variable generation and store electricity is essential for Australia’s transition to renewables.
ARENA has previously provided $81 million in funding for eight grid-scale batteries, including five with grid-forming capability at a smaller scale. 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.
The agency said 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.
