Australia’s largest grid-forming battery will come to fruition after receiving the “green light” for construction in the Upper Hunter.
AGL has reached a Final Investment Decision (FID) on a 500 MW/1,000 MWh power source at Liddell, between Muswellbrook and Singleton.
The battery, to be built on the site of the retired plant, is expected to form part of the company’s Hunter Energy Hub.
Originally planned at half the size (250 MW/500 MWh), AGL decided to increase it, which will help to provide important systems services to the region.
The Australian Renewable Energy Agency’s (ARENA) Large Scale Battery Funding Round, announced last year, saw conditional financial assistance awarded to eight battery projects across the nation.
Each will be equipped with grid-forming inverter technology, allowing them to provide essential system stability services traditionally provided by synchronous generation such as coal and gas.
At the time, the battery projects from AGL, Origin, Neoen, FRV, Risen and TagEnergy represented a tenfold increase in storage capacity operating in the National Electricity Market.
As Australia’s system switches to higher rates of inverter-based generation such as wind and solar, new ways of delivering services are needed to keep the grid stable.
Grid-forming inverters are one of the missing pieces of the puzzle that will help to support the transition to 100% renewables.
“As new solar and wind connects to our grids, we’re going to need increasing amounts of energy storage to continue to provide reliable electricity to our households and businesses,” ARENA CEO Darren Miller said.
“However, as coal and gas generators retire, or start to play a lesser role, we’ll also require these new batteries to provide the crucial system security services that are currently provided by these traditional generators.
“This is why it is important to fund batteries like AGL’s that are equipped with smart inverter technology, which can help stabilise the grid as we transition to renewables.”
AGL’s managing director and CEO Damien Nicks welcomed the announcement.
“We’re excited to approve another major grid battery project in our development pipeline, supporting the local economy and creating energy transition jobs at our Hunter Energy Hub,” he said.
“Prior to the Large Scale Battery Storage Funding Round, ARENA previously provided $81 million in funding for eight grid-scale batteries, including five with grid-forming capability at a smaller scale.
“This included the 150 MW/300 MWh Riverina Battery at Darlington Point and the 150 MW/194 MWh Hornsdale Power Reserve in South Australia, which are currently the largest operating grid-forming batteries in Australia.
“The previous projects have highlighted the potential of grid-forming batteries and the need to support further ones at a larger scale.”
AGL’s Liddell battery will begin construction in early 2024.
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