AGL has officially approved the final investment decision (FID) for Australia’s largest grid-forming battery, a 500MW/1000MWh facility in Liddell, New South Wales.
Initially proposed at 250MW/500MWh, the battery will be situated at the retired Liddell power station as part of AGL’s Hunter Energy Hub.
The Australian Renewable Energy Agency (ARENA) had conditionally approved up to $35 million in funding for the project under the $176 million Large Scale Battery Storage Funding Round.
The battery, equipped with grid-forming inverter technology, is vital for supplying essential system stability services traditionally offered by synchronous generation from sources like coal and gas.
Eight grid-scale battery projects, including those from AGL, Origin, Neoen, FRV, Risen, and TagEnergy, were awarded conditional funding through ARENA’s Large Scale Battery Funding Round, representing a significant boost in grid-forming electricity storage capacity in the National Electricity Market.
According to ARENA, As Australia transitions to higher levels of inverter-based generation from wind and solar, the incorporation of grid-forming inverters becomes crucial in ensuring a stable and efficient electricity grid during this shift to 100 per cent renewables.
ARENA CEO Darren Miller welcomed the FID announcement, highlighting the importance of utilising all the capabilities available from renewable energy technologies.
“As new solar and wind connects to our grids, we’re going to need increasing amounts of energy storage to continue to provide reliable electricity to our households and businesses. However, as coal and gas generators retire, or start to play a lesser role, we’ll also need these new batteries to provide the crucial system security services that are currently provided by these traditional generators,” said Miller.
“This is why it is important to fund batteries like AGL’s that are equipped with smart inverter technology which can help stabilise the grid as we transition to renewables.”
“We look forward to the construction of AGL’s battery in Liddell and expect to see the other ARENA funded grid-forming batteries reach similar milestones in 2024.”
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