Australia invests in extensive energy storage projects

The Australian Capacity Investment Scheme (CIS) will enhance energy storage capabilities in Victoria and South Australia by supporting six new, large-scale battery projects. These initiatives encompass a capacity of 3.6 gigawatt-hours (GWh) and are part of the government's plan to improve the deployment of renewable energy and grid reliability. In Victoria, EnergyAustralia will operate the Wooreen 350MW lithium-ion battery system at the Jeeralang power plant site in Hazelwood North. Additionally, Project Power will construct a 115MW lithium-ion battery storage facility at the Springvale Energy Hub on a former landfill in southeast Melbourne. In South Australia, the landscape will be enhanced by the Limestone Coast West 250MW lithium-ion battery from Pacific Green Energy near Mount Gambier. Additionally, Zen Energy's Solar River 170MW lithium-ion battery combined with a 230MW solar farm will be installed north of Adelaide. Pacific Blue will manage the 60MW lithium-ion battery at the Clements Gap Wind Farm, while EnergyAustralia will own the Hallett 50MW lithium-ion battery in Canownie. These batteries will deliver an additional capacity of 1,630 megawatt-hours (MWh) to Victoria and 1,996MWh to South Australia. Estimates suggest that these batteries, which can operate for up to four hours, can supply energy to meet the peak power demands of one million households. The projects, implementation of which depends on the signing of a capacity investment agreement, are expected to be operational by mid-2027. The goal of CIS is to foster new investments in the deployment of renewable energy capabilities such as battery storage and generation from solar and wind power, to meet rising electricity demand and close reliability gaps as older coal-fired power plants retire. The Australian government has also announced that two further CIS tenders are currently underway, with the next one set to be opened at the end of 2024. In August 2024, the Australian Senate passed the Net Zero Economy Authority (NZEA) Act, a move towards establishing an independent statutory body for the country's energy sector.