RWE is starting a big 8-hour battery project in New South Wales. Also, they’re looking for more long-lasting energy sources in the state. The German energy company decided to invest in a 50MW/400MWh battery system near their 249MWac Limondale Solar Farm, close to Balranald, NSW.
RWE won a contract for a long-term energy project from New South Wales government over a year ago.
AEMO Services, part of Australian Energy Market Operator, is handling bids for NSW state’s 10-year plan. Developers are vying for projects and access to the state’s five planned REZs.
The Limondale Battery Energy Storage System (BESS) will be placed in the NSW South West Renewable Energy Zone (REZ), and will be linked to power lines using existing substation infrastructure. REZ projects in various Australian regions will include large amounts of wind, solar, battery storage, and possibly green hydrogen technology. Tesla Megapack lithium-ion BESS will be deployed at Limondale. Construction should start in the latter part of 2024, aiming for completion by the end of next year. Beon Energy Solutions, an Australian company specializing in renewable energy and infrastructure, will supply the necessary equipment.
Ongoing NSW tenders for long-duration resources, REZ access rights
RWE and NSW have a 14-year agreement where the state guarantees the developer’s income for an energy storage project. If revenues are low, the state pays RWE, and if they’re high, RWE pays the state. This will be Australia’s first 8-hour lithium-ion battery project. NSW has started a new tender for LDES as part of the Electricity Infrastructure Roadmap, offering up to 1GW in project bids and 3.98GW in access rights for South West REZ.
The tenders are increasing because the current energy storage market does not encourage building long-duration storage plants. Shorter Li-ion BESS projects can earn profits, but there’s a need for market reforms to support longer storage. Australia’s National Battery Strategy aims to promote all types of storage technologies.
