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.

Group1 and Michigan Potash & Salt Company have signed an agreement to create a domestic potassium-based battery supply chain, relying on local mining and production free from critical metals.
A battery storage project developed in Shiga Prefecture marks a new step for the Japanese industry, with the official commissioning of a 4MWh facility aimed at the primary balancing market.
Nine battery storage projects totalling 18MW will be built by au Renewable Energy across the Chubu, Kansai and Kyushu regions, with commissioning scheduled through March 2027.
ACEnergy’s Central BESS project has been approved with a $3.6mn benefit-sharing plan for local and Indigenous communities.
Operator Fullmark Energy has finalised a $46mn investment tax credit transfer linked to its 125MW Redwood storage portfolio in Southern California, strengthening its ability to pursue further growth in the sector.
Eos Energy confirmed the expiry of its public warrants following the exercise of 6.7 million units, generating $76.9mn to finance its industrial projects in the United States.
Trina Storage and Pacific Green Energy Group have signed a memorandum of understanding for the supply of 5GWh of battery systems by 2028, reinforcing their activities in the Australian and international energy storage market.
HyperStrong commits to purchase at least 200 GWh of battery cells from CATL by 2028, as part of a strategic partnership aimed at structuring a global energy storage ecosystem.
A report urges European states to rapidly deploy long-duration energy storage technologies, deemed essential to avoid building obsolete gas assets and reduce grid costs by 2040.
LibertyStream has signed a memorandum of understanding with Packet Digital to secure a local supply of lithium carbonate for industrial and military battery production, backed by approximately $2.7mn in funding.
US-based Rondo Energy and SCG Cleanergy have completed the installation of a 33 MWh heat battery at a cement plant in Thailand, the first of its kind in Southeast Asia, delivering steam to power a turbine for industrial electricity generation.
Entech and Primeo Energie create Primtech Batteries to develop battery electricity storage projects in France and the European Union, targeting 100 MW installed by 2029.
Three New York public high schools are introducing a new energy storage module this year, through a partnership between NineDot Energy and Solar One aimed at preparing students for careers in distributed energy.
Nuvve Holding Corp. plans three 2MW battery installations in Eastern Zealand to strengthen the Danish grid and optimise revenues through its proprietary software platform.
HS Hyosung partners with Umicore to produce silicon anodes, a key material for next-generation batteries, through a €120 mn investment to strengthen its position in energy storage.
LG Energy Solution partners with South 8 Technologies to develop lithium-ion batteries capable of operating at -60 °C, strengthening its position in the space sector alongside KULR Technology Group and NASA.
Masdar commits to developing a 300MW/600MWh battery storage system in Uzbekistan, marking a major step in modernising the national grid and securing investments in renewable energy.
Jabil and Inno will co-develop a 15,000 sqm plant in Rayong, Thailand, to manufacture metal enclosures for battery energy storage systems, aiming to enhance vertical integration and secure supply chains.
Adani Group launches a 1126 MW project in Khavda, marking its first entry into energy storage, with one of the largest BESS systems ever built at a single site.
Kuwait is preparing a battery storage project with a capacity of up to 6 GWh to stabilise its power grid and address rising electricity demand.

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.