Energy Vault Holdings, Inc. (NYSE: NRGV), a leader in sustainable, grid-scale energy storage solutions, and ACEN Australia have announced a significant agreement to deploy two battery energy storage system (BESS) projects totaling 400 MWh in Australia. This collaboration marks a pivotal step towards enhancing Australia’s renewable energy infrastructure.
Thanks to technological advancements, large-scale BESS has emerged as the superior choice for electricity-peaking services. BESS stores energy when needed most, offering high cost, flexibility, and emission advantages compared to traditional peaking services like open-cycle gas turbine plants.
BESS provides faster reaction times, higher accuracy, and increased flexibility, allowing efficient responses to price variability in the energy market.
The agreement entails deploying a 50 MW/100 MWh BESS and a 150 MW/300 MWh BESS at ACEN Australia’s New England Solar facility, a prominent player in Australia’s National Electricity Market (ANEM). These BESS installations will be crucial in storing and dispatching renewable energy to meet peak consumption demands while reducing reliance on conventional coal-fired power generation.
ACEN Australia’s New England Solar near Uralla has already completed Stage 1 construction, boasting 400MW of solar generation capacity. Upon completion of Stage 2, the facility is projected to generate 1,800 GWh of renewable electricity annually, significantly contributing to the region’s clean energy goals.
Robert Piconi, Chairman and Chief Executive Officer of Energy Vault, expressed pride in their involvement in bolstering the New England Solar project’s capacity to deliver clean power efficiently. He emphasized Energy Vault’s commitment to customer-centric energy storage solutions, underscoring the growing global demand for reliable renewable energy infrastructure.
The BESS deployments will leverage Energy Vault’s B-VAULT™ suite of fully integrated battery energy storage solutions and Siemens S120 inverters for advanced grid support functionalities. This strategic integration will enhance energy management capabilities, ensuring optimal performance and reliability of the BESS installations.
Australia is witnessing a surge in the deployment of BESS projects, with 12 “big battery” projects already operational, 38 more underway, and an additional 42 proposed. In 2021, the BESS market in Australia experienced a record-breaking year, surpassing 1 GWh of annual battery storage deployments. This energy could power 750,000 homes, with approximately 756 MWh of non-residential storage focusing on large-scale front-of-the-meter projects.
As Australia progresses towards cleaner energy sources, there is a growing need for firming storage to ensure energy supply stability during times of poor renewable generation. AEMO estimates a requirement of 19 GW of firming storage by 2040 to support the transition, predicting that by 2040, 63% of coal-fired energy generation will retire, replaced by 26-50 GW of renewable energy generation. BESS is poised to play a crucial role in meeting this demand for firming storage.
The Australian government acknowledges the benefits of BESS and has committed to supporting its deployment. Through the Australian Renewable Energy Agency (ARENA), the government has pledged $100 million in funding for large-scale battery energy storage projects.
One notable BESS project in Australia is the Ballarat Energy Storage System, commissioned in 2018. It was the first standalone battery-based energy storage system installed in front of the meter and directly connected to the transmission network. Located in Victoria, the system provides 30 MWh of storage capacity at 30 MW.
