A​ ​new​ ​large-scale​ ​battery,​ ​designed​ ​to​ ​demonstrate​ ​how​ ​energy​ ​storage​ ​can​ ​strengthen​ ​the grid​ ​and​ ​potentially​ ​lower​ ​energy​ ​prices,​ ​will​ ​be​ ​built​ ​in​ ​South​ ​Australia​ ​with​ ​support​ ​from the​ ​Australian​ ​Renewable​ ​Energy​ ​Agency.

Federal ​Minister​ ​for​ ​the​ ​Environment​ ​and​ ​Energy​ ​Josh​ ​Frydenberg ​announced the​ ​agency​ ​would​ ​provide​ ​up​ ​to​ ​$12​ ​million​ ​in​ ​funding​ ​toward​ ​a​ ​30MW,​ ​8MWh​ ​battery at​ ​the​ ​Dalrymple​ ​substation​ ​on​ ​the​ ​Yorke​ ​Peninsula.

ARENA​ ​CEO​ ​Ivor​ ​Frischknecht​ ​said​ ​the​ ​battery​ ​– the​ ​second​ ​phase​ ​of​ ​the​ ​Energy​ ​Storage​ ​for Commercial​ ​Renewable​ ​Integration​ ​(ESCRI)​ ​project ​– was​ ​expected​ ​to​ ​cost​ ​around​ ​$30​ ​million.

ESCRI​ ​Phase​ ​1​ ​consisted​ ​of​ ​a​ ​study​ ​into​ ​the​ ​potential​ ​for​ ​energy​ ​storage​ ​to​ ​benefit​ ​the South​ ​Australian​ ​network.​

​Frischknecht​ ​said​ ​the​ ​ESCRI​ ​battery​ ​would​ ​make​ ​an​ ​important​ ​contribution​ ​to​ ​security​ ​and reliability​ ​of​ ​supply​ ​in​ ​the​ ​context​ ​of​ ​high​ ​renewable​ ​energy​ ​generation​ ​in​ ​South​ ​Australia.

“This​ ​is​ ​also​ ​the​ ​first​ ​large-scale​ ​grid-connected​ ​battery​ ​to​ ​be​ ​designed,​ ​built​ ​and commercially​ ​operated​ ​in​ ​Australia​ ​largely​ ​with​ ​private​ ​investment​ ​from​ ​energy​ ​providers,” Frischknecht said.

“It​ ​may​ ​not​ ​be​ ​the​ ​biggest​ ​battery​ ​in​ ​the​ ​world,​ ​but​ ​pound-for-pound​ ​it​ ​will​ ​pack​ ​a​ ​big punch​ ​in​ ​demonstrating​ ​how​ ​utility​-scale​ ​storage​ ​can​ ​contribute​ ​to​ ​a​ ​stronger​ ​South Australian​ ​energy​ ​network.”

​Frischknecht​ ​said​ ​the​ ​ESCRI​ ​project​ ​would​ ​demonstrate​ ​how​ ​utility​-scale​ ​battery​ ​storage could​ ​help​ ​contribute​ ​to​ ​a​ ​more​ ​secure,​ ​reliable​ ​and​ ​affordable​ ​electricity​ ​system.

He​ ​listed the specific​ ​benefits​ ​as:

Supplying​ ​fast​ ​frequency​ ​response​,​ ​which​ ​helps​ ​balance​ ​the​ ​electricity​ ​network, particularly​ ​in​ ​the​ ​context​ ​of​ ​increased​ ​levels​ ​of​ ​renewable​ ​energy​ ​generation.​ ​This capability​ ​will​ ​also​ ​be​ ​used​ ​to​ ​help​ ​reduce​ ​operating​ ​constraints​ ​on​ ​the​ ​Heywood interconnector​ ​with​ ​Victoria​ ​which,​ ​in​ ​turn,​ ​has​ ​the​ ​potential​ ​to​ ​place​ ​downward​ ​pressure on​ ​wholesale​ ​energy​ ​prices​ ​in​ ​SA.

Providing​ ​contingency​ ​power​ ​for​ ​the​ ​Dalrymple​ ​service​ ​area​ ​during​ ​a​ ​loss​ ​of​ ​supply.​ ​​The islanded​ ​battery​ ​will​ ​work​ ​together​ ​with​ ​the​ ​existing​ ​90MW​ ​Wattle​ ​Point​ ​wind​ ​farm​ ​and rooftop​ ​solar​ ​PV​ ​in​ ​a​ ​microgrid​ ​to​ ​provide​ ​backup​ ​local​ ​supply​ ​until​ ​connection​ ​to​ ​the​ ​grid is​ ​restored.

Demonstrating​ ​that​ ​utility​-scale​ ​batteries​ ​can​ ​aggregate​ ​and​ ​“value​ ​stack”​ ​multiple​ ​revenue streams​​ ​and​ ​deliver​ ​both​ ​regulated​ ​network​ ​services​ ​and​ ​competitive​ ​market​ ​services,​ ​thereby encouraging​ ​other​ ​energy​ ​developers​ ​to​ ​enter​ ​the​ ​market​ ​with​ ​battery​ ​projects.

It​ ​is​ ​expected​ ​it​ ​will​ ​be​ ​constructed​ ​and operational​ ​by​ ​February​ ​2018.

The​ ​project​ ​will​ ​be​ ​procured​ ​and​ ​maintained​ ​by​ ​transmission​ ​provider​ ​ElectraNet,​ ​which​ ​is​ ​in discussions​ ​with​ ​potential​ ​energy​ ​retail​ ​operators​ ​to​ ​provide​ ​market​ ​services.​ ​Consulting​ ​firm Advisian​ ​has​ ​supported​ ​the​ ​development​ ​of​ ​the​ ​project​ ​from​ ​its​ ​inception​ ​and​ ​will​ ​play​ ​a​ ​key role​ ​in​ ​delivering​ ​the​ ​knowledge​ ​sharing​ ​plan​ ​to​ ​maximise​ ​industry​ ​learning.