Energy storage: ARENA, an Announced Change

ARENA and the Australian government are co-funding a lithium-ion energy storage system in Sydney, Wallgrove Grid, with 21 million euros. This project demonstrates the effectiveness of large-scale energy storage for the energy transition.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Energy storage is one of the priorities announced by the Australian government and its agency, the Australian Renewable Energy Agency (ARENA). With this in mind, the government has just announced that it will co-fund a large-scale energy storage system in Sydney’s west.

An energy storage project worth tens of millions of euros

ARENA will provide TransGrid with up to 11 million euros. This validated the construction of a large-scale 50 MW/75 MWh lithium-ion battery pack. It will be connected to the grid via its Wallgrove substation in Sydney’s west.

The New South Wales (NSW) government will also provide 10 million euros to finance the energy storage project. It is part of the company’s Emerging Energy Program, valued at 46.2 million euros.

Wallgrove Grid project to complete Transgrid’s fleet

Once built, the Wallgrove Grid will provide fast frequency response services to the NSW transmission network. Owned and operated by TransGrid, it is valued at around 61.9 million euros.

The Wallgrove Grid will be equipped with Tesla’s Megapack, demonstrating its cutting-edge synthetic inertia capability known as “virtual machine mode”.

Energy storage
Infrastructure of several Megapack batteries (source: Tesla).

 

Conquered partners

Darren Miller, CEO of ARENA, said the Wallgrove Grid project aims to prove that energy storage using Lithium-Ion technology is the best solution. On a large scale, it enables efficient management of system inertia, as Australia embarks on its energy transition.

“Energy storage is a priority need under the Australian government’s first statement on low-carbon technologies. ARENA has already played a key role in supporting operations of this type.”

“Large-scale batteries have an important role to play in strengthening and balancing our power grid. We are moving towards an energy mix dominated by renewable energies”.

An ongoing project

In addition, the agency has already supported five network installations. These include the Hornsdale power reserve expansion, the ESCRI and Lake Bonney batteries in South Australia, and two in Victoria at Ballarat and Gannawarra. In doing so, TransGrid will demonstrate that batteries can provide the most cost-effective solution to NSW’s inertia deficit.

“The Wallgrove Grid project will demonstrate the technical capacity of batteries with advanced technologies, complemented by the latest generation of inverters, to replace traditional inertia.

TransGrid, a source of innovation in Australia

Eva Hanly, Executive Director of TransGrid Strategy, Innovation and Technology, said:

“TransGrid is committed to finding innovative, low-cost solutions to meet the new challenges of the energy transition. This will be the first set of its kind to be tested in NSW.”

This advanced technology for the NSW grid and Australia’s national electricity market will accelerate the industry’s transformation to a low-carbon, lower-cost energy system.

An installation supplied by Infigen Energy

Infigen Managing Director Mr Ross Rolfe, said:

“This innovative agreement with TransGrid shows that Infigen continues to be at the forefront of Australia’s clean energy transition. In addition, it increases Infigen’s energy capacity and enables TransGrid to enhance the potential of the Australian grid. It’s also great to see Infigen continuing to grow, thanks to Iberdrola’s resources and expertise.”

In January 2020, the Australian government and NSW signed a memorandum of understanding. The aim is to jointly finance initiatives to limit the cost of electricity supply for consumers. The protocol also aims to limit emissions and enhance network reliability.

Sustainable Holdings is developing a battery storage facility in Matsusaka, with operations scheduled to begin in June 2026 on Japan’s electricity market.
California-based Korbel Winery is now equipped with an integrated energy storage and intelligent control system, installed by Energy Toolbase and BPi, to optimise usage and address local grid constraints.
The 200 MW Greenwater battery storage project enters execution phase following a $400mn bank financing, marking a strategic milestone in the Pacific Northwest’s energy infrastructure development.
Solar with batteries becomes a bankability lever in three key ASEAN markets, where the focus shifts from cost reduction to the monetisation of energy flexibility.
Energy group RWE launches construction of its largest UK storage system, with 700 MWh capacity, at its Pembroke power station in Wales.
The Australian government opens Tender 8 to secure 16 GWh of storage, for the first time including aggregated portfolios of 5 to 30 MW within the National Electricity Market.
With a strategic investment in a 200 MWh facility, European Energy strengthens its industrial position in Denmark and energises the Nordic battery storage market.
The Spanish renewable energy producer significantly increased its investments and revenue while achieving more than half of its asset rotation target for the 2025–2027 period.
Chinese manufacturer EVE Energy has signed a three-year memorandum of understanding with Sweden’s Vimab BESS AB to supply batteries and energy storage solutions in Northern Europe.
Huawei's full-lifecycle battery safety rating system has been officially validated by a national technical committee, marking a key milestone for large-scale energy storage deployment.
AMPYR Australia and InCommodities have signed a 15-year partnership for the Bulabul BESS project, marking the Danish trader’s first long-term commitment in the Australian energy storage market.
Tokyo Gas and Okaya & Co. will begin construction in December 2025 of a 25 MW/75 MWh battery energy storage system in Hokkaido, with commercial operations expected in 2028 or later.
US-based CETY has been awarded a $10mn contract to build a battery energy storage system in New York State, marking the first in a series of planned installations across the region.
French energy group Engie wins its second-largest global battery storage project with a capacity of 280 MW, awarded by a state-owned company in Gujarat, India.
Nostromo’s IceBrick system becomes the first behind-the-meter thermal storage device to participate in California’s wholesale energy market, in partnership with Olivine, marking a milestone for commercial buildings.
Pacific Green has received approval from the Victorian government for its second energy storage park in Australia, a 1GW project to be developed over 36 months in Portland’s industrial zone.
TagEnergy launches a 150 MW storage project at the Golden Plains wind farm site, strengthening its investment strategy in Australia's energy infrastructure.
CATL, Sun Village and Marubeni Power Retail have signed an agreement to develop 2.4GWh of grid-scale storage capacity in Japan, without a defined schedule, leveraging investment, construction and commercial management synergies.
Northland Power has acquired two energy storage projects in Poland from Greenvolt Power Group, consolidating a strategic partnership in a transitioning market.
The global battery energy storage systems market anticipates 28.8% annual growth through 2033, supported by industrial electrification, government incentives and grid modernisation efforts.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.