Battery storage funding committed to SA grid

The world’s largest battery storage ‘virtual power plant’ will be established in South Australia, designed to support renewable energy, improve grid stability and reduce power price volatility.

The Australian Renewable Energy Agency (ARENA) has conditionally committed up to $5m funding for AGL to install 1000 centrally controlled batteries in South Australian homes and businesses with a combined 5 MW/7 MWh storage capacity.

The project was launched in Adelaide by Ivor Frischknecht, ARENA CEO, Andy Vesey, AGL CEO and Tom Koutsantonis, Treasurer and Minister for Mineral Resources and Energy.

Frischknecht said the $20m project could provide solutions to South Australia’s grid challenges and reduce the risk of power price shocks in the state.

“Australia is on the cusp of a battery storage revolution as technology costs continue to fall. ARENA is at the forefront of figuring out how batteries can best support renewable energy to provide affordable, reliable and sustainable power,” he said.

AGL intends to operate the batteries as a type of virtual power plant, installing them alongside solar PV and linking all 1000 systems with centralised monitoring and management software.

“The result is like adding a 5 MW power station that can quickly deliver enough energy to power 1000 South Australian homes where and when it’s needed most,” said Frischknecht. “This approach can ease local network constraints, displace gas power and complement the Victorian interconnector, especially during times of peak demand.”

AGL has selected Sunverge batteries and control systems for phase one of the project. Sunverge received an ARENA-backed investment and its batteries are also being trialled in Queensland by Ergon Energy in another ARENA-supported project.

Frischknecht said ARENA expects virtual power plants to play a significant role in the future as more renewable energy is connected to our power networks.

“This project is set to be the largest demonstration of a virtual power plant in the country. South Australia is home to some of the highest levels of solar and wind in the world, making it an ideal proving ground.

“It could also act as a catalyst and provide evidence for regulatory change to enable more Australian virtual power plants. ARENA funding support depends on the negotiation of a funding agreement, which will include comprehensive knowledge-sharing outcomes.

“The knowledge would show a path to commercialisation and present lessons that regulators and other energy companies can learn from.”

AGL Managing Director and CEO Andy Vesey said AGL is pleased to be partnering with ARENA on this project, which is hoped will demonstrate future options for energy generation and supply mix.

“The energy landscape is rapidly changing and distributed energy services through projects like this, involving batteries, solar and the grid, can help customers manage their energy bills and provide grid stability,” Vesey said.

Image credit: ©stock.adobe.com/au/Denis Ismagilov