According to foreign media reports, the Australian Capital Territory (ACT) government has announced that it will commit funding to deploy battery energy storage systems (BESS) in the 2022-2023 budget.
The ACT's planned deployment of the Big Canberra Battery Energy Storage System has already begun procurement, which is a battery storage project deployed in three phases: the first phase will deploy a 250MW battery storage system, the second phase will deploy multiple small battery storage systems for government buildings, and the third phase will deploy a community battery storage system for local home users.
Although Australian Capital Territory Chief Minister Andrew Barr did not disclose the investment amount in a recent announcement, the state government will commit about A$850,000 ($586,000) in initial funding from its budget to start the project, according to local media reports. The project was first disclosed in the 2020 to 2021 budget, with the ACT government committing to invest A$100 million in the project over five years.
A 350 MW Victorian Big Battery battery storage system, was deployed in Victoria, Australia, by energy storage developer Neoen Inc. The company is building a 100MW/200MWh battery storage system in the Australian Capital Territory.
Australia's goal of net zero emissions by 2045 is leading us to take climate action," Barr said. We will use 100 percent renewable electricity, commit to reducing carbon emissions, and provide sustainable energy to Canberra homeowners. The next step in our plan is to deploy the most extensive battery storage system in the Australian Capital Territory."
The ACT government also recently unveiled the state's zero-emissions vehicle program, which Barr previously acknowledged would significantly increase demand for electricity as electrification progresses.
In a statement, the ACT government noted that these battery storage systems would reduce the load on the grid and enable more homeowners to install more rooftop solar power facilities. The 250 MW battery storage system, deployed in the first phase will directly support the grid. In Phase 2, 14 battery storage systems deployed at government buildings will reduce grid energy consumption, while in Phase 3 community battery storage systems will do the same for homeowners.
The procurement process for the first two phases is being prepared for launch and is expected to go out to developers for bids starting in August.
The ACT Government consulted with stakeholders, industry, and experts on the Big Canberra Battery battery storage project last year to receive input on potential deployment locations, applications, and other planning aspects.
The battery storage project is expected to be deployed in the ACT and operational between 2023 and 2024.
Two large battery storage projects are already under construction.
The Australian Capital Territory's fifth renewable energy reverse auction awarded two developers developing large wind farms long-term contracts to deploy battery storage systems in the state for less than A$50/MWh ($36/MWh).
French renewable energy developer Neoen is building the Goyder South Renewable Energy Center, which includes wind power facilities, solar power facilities, and a 100MW/200MWh battery storage system. In April, the company signed another off-take agreement for the project with AGL, a major retailer of renewable energy generation facilities.
The other winning project was a 10MW/20MWh battery storage system deployed by developer GPG, a subsidiary of international renewable energy developer Naturgy, and the company's new Berrybank wind farm.
Interestingly, these two companies' wind farms are not being built in the Australian Capital Territory (ACT); the GoyderSouth wind farm is located in South Australia, and the Berrybank wind farm is located in Victoria, but through the signed contracts, they can provide power to the ACT. Their deployed battery storage systems also offer region load management and grid services.
Reconfiguring Energy Markets for the Energy Storage Era
In related news, the Australian Renewable Energy Agency (ARENA) has said it would fund a research initiative to integrate energy storage systems into the energy market.
The Australian Renewable Energy Agency (ARENA) will provide $495,000 in funding for Monash University research to explore alternative energy market designs, encourage investment in energy storage systems, and ensure that Australia has access to electricity that transitions from fossil-fueled generation to the use of renewable energy, distributed energy sources, and energy storage systems.
The Australian Renewable Energy Agency (ARENA) has been keen to explore the available energy storage systems' technical aspects. These funding demonstration projects provide synthetic inertia for battery energy storage systems through advanced inverter technology.
Darren Miller, chief executive officer of the Australian Renewable Energy Agency (ARENA), said, "As conventional power generation facilities are phased out, we need to deploy more energy storage systems to play a greater role in consolidating and balancing the power system." He noted that investments into sizeable pumped storage generation facilities and battery storage systems are critical for Australia to continue bringing variable renewable energy to the grid.
