Major grid-forming battery gets go-ahead in NSW

Early 2024 will see construction begin on a major battery project in NSW — AGL’s 500 MW/1000 MWh grid-forming battery on the site of the retired Liddell power station.

The Australian Renewable Energy Agency (ARENA) has conditionally approved up to $35 million in funding to the project as part of the Australian Government’s $176 million Large Scale Battery Storage Funding Round.

The grid-scale battery will form part of AGL’s Hunter Energy Hub, helping to provide important systems services to the Hunter region.

“We are excited to approve another major grid battery project in our development pipeline, supporting the local economy and creating energy transition jobs at our Hunter Energy Hub,” said AGL’s Managing Director and CEO, Damien Nicks.

ARENA’s Large Scale Battery Funding Round, announced in 2022, saw conditional funding awarded to eight grid-scale battery projects across Australia. Each of these batteries will be equipped with grid-forming inverter technology, allowing them to provide the essential system stability services traditionally supplied by synchronous generation such as coal and gas.

With Australia’s electricity system moving towards higher rates of inverter-based generation such as wind and solar, new ways of delivering system services are needed to keep the grid stable. Grid-forming inverters are one of the missing pieces of the puzzle that will help to support the transition to 100% renewables.

“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 ARENA CEO Darren 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,” he said.

“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.”

Image caption: AGL’s Hunter Energy Hub site in Liddell, NSW. Image supplied by ARENA.