Friday 15 September 2023

French-led proposal for Australia's second-biggest battery storage in Tasmania will 'reduce energy costs', company says.


Extract from ABC News

ABC News Homepage

Tasmania could have its first grid-connected battery by 2026 under a new proposal from the country's largest battery operator.

Earmarked to begin construction by the middle of next year, the Great Lakes Battery has the potential to become Australia's second-largest battery.

Proposed by Paris-based energy company Neoen, the battery would add an additional 140 megawatt of capacity to Tasmania's energy network.

Under a second phase contingent on "external market factors", the battery could be scaled up to a total of 280MW of capacity, proponents say.

According to a planning application being considered by North Midlands Council, the battery would store energy when there is "excess energy" in the network and release energy when demand is high — acting as what is known as a frequency control ancillary service.

The Great Lakes Battery would cover 4 hectares of land and be plugged into Tasmania's transmission network via the Palmerston substation, approximately 40 kilometres south of Launceston.

Battery project will benefit Tasmanian consumers, company says

Tom Jenkins, Neoen's state leader for South Australia and Tasmania, said the battery would play an important part in Tasmania's energy mix.

In Tasmania, hydro power is responsible for supplying about 80 per cent of the state's energy, providing the state with a significant energy supply as water can be released to power turbines when needed.

Mr Jenkins says the battery would be quicker in meeting urgent demand.

"This battery can respond very quickly, as can all lithium ion batteries, to provide grid stability services in a matter of milliseconds," he said.

"Having a battery like this available in the Tasmanian network should reduce what Tasmanians pay for those frequency control services."

Mr Jenkins hopes the Hornsdale Power Reserve in South Australia, which it owns and operates, provides a template for Tasmania — claiming it has reduced frequency control costs for the state by $150 million.

"Obviously, South Australia is a bigger place than Tasmania, the absolute numbers are not going to be as high … but we're certainly expecting to see some real benefits for Tasmanian consumers."

The company has committed to self-financing the project, and if approved, the battery would cost at least $200 million to construct.

That cost will be contingent on many factors, including avoiding mishaps such as the industrial fire at its Geelong-based Big Battery in 2021 that Energy Safe Victoria said was "most likely" caused by a leak in its cooling system.

An aerial photo of a giant battery site with the sun shining in the background
Neoen's 300-megawatt Victorian Big Battery, near Geelong, is the largest battery in Australia.(Supplied: Victorian government)

Batteries portable, 'unlike Marinus', expert says

For Marc White, principal consultant at Goanna Energy Consulting, the proposal is welcome news.

He believes the battery would be an important piece of infrastructure to maximise the state's renewable energy potential.

"It's very important as we install more renewable energy and more variable renewable energy, that we've got things like batteries … to firm up that supply and keep our systems stable," he said.

Mr White said the proposal raised questions about the utility of Marinus Link, the proposed underground and undersea electricity interconnector between Tasmania and Victoria.

"Unlike … Marinus Link, batteries can be deployed to the point where they're needed. They can be trucked out and reinstalled at other places," he said.

Christiaan Zuur, the Clean Energy Council's director of market, grid and investment, welcomed the project's potential to support the country's transition to renewable energy.

"Batteries and hydropower work together to keep the power system stable, and to help smooth out the variability of wind and solar. Taken together, this means a lower overall cost of delivering zero-carbon electricity for customers," he said.

"The design of future policies to guide long-term investment and development of large-scale wind and solar farms relies on recognising the important advantage of these energy storage projects."

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