First sod turned in plan to build networks of dozens of small batteries on regional grids
Developers have broken ground on plans to build, own, and operate dozens of 5MW, two-hour batteries on distribution networks in regional Australia, in a bid to fill a “crucial gap” between home energy storage and grid-scale big batteries.
The portfolio of 27 distribution battery energy storage systems, or DBESSs, was announced earlier this month by Sustainable Energy Infrastructure (SEI) and clean energy developer Acenergy (ACE), targeting a total of 135MW/270MWh of batteries installed across three states.
The first phase of the project – the construction of seven 5MW, two-hour batteries on the regional Victorian network operated by Powercor – had its official launch on Wednesday, with a sod-turning at a site in Tongala, Victoria.
The installation of mid-scale batteries in front of the meter – in amongst the poles and wires and substations that transport electrons to and from households – offers a solution to a number of problems facing distribution networks trying to manage increasingly high penetration of rooftop solar.
The idea is that they soak up the excess solar that floods the grid during the middle of the day, and then discharge it back into the grid at night, theoretically making the evening peak power cheaper for all, and not just those households able to install rootop PV.
soak up the excess solar that floods the grid during the middle of the day, and then discharge it back into the grid at night
The difficulty is in working out who builds and owns these assets, how they are managed and monetised, how to ensure net benefits make it through to customers in the form of cheaper power bills, and where monopoly network companies stand in all of this.
Currently, distribution network companies like Powercor are restricted from developing their own community-scale batteries on their own networks, due to ring-fencing rules – although recently there have been exceptions made to these rules while some trials take place under the watch of (and with funding from) Arena.
DNSPs argue, however, that they are in a superior position to roll out community-scale batteries, with the knowledge of where best to locate them and easy access to existing assets, infrastructure and know-how. They also note that installing batteries of this scale can them help avoid other more costly infrastructure upgrades, thus pushing down the network component of household bills – a win for all.
Finally, the network companies argue they can do this quickly – much more quickly than big battery developers – chipping away at Australia’s urgent need for energy storage, particularly with rooftop solar now tipped by the Australian Energy Market Operator to quadruple to around 86 GW by 2050.
Certainly, in states like Queensland and Western Australia where the network companies are state-owned, they are getting on with the job.
Outside of the network industry, however, consumer advocates argue that community batteries should be exactly that – owned by the community and at the service of the both those households unable to store their excess rooftop solar and those households unable to install solar, at all.
In this case, it is two clean energy developers and investors taking the initiative to install DBESSes, one of which – ACEnergy – has made the development and delivery of mid-scale renewable energy assets its specialty.
“Developing projects in distribution networks has been a cornerstone of our operations,” said ACEnergy managing director Raymond Wang in a statement this week.
“With extensive knowledge and experience throughout regional Australia, we are confident in successfully delivering these projects, as we have consistently done before.”
Saji Anantakrishnan, SEI director and PATRIZIA Infrastructure’s head of Australia and Asia, says the batteries are about supporting Australia’s energy transition while also providing stability to local communities.
“The partnership between SEI and ACE is typical of our mid-market infrastructure strategy, which focuses on building long-term complementary partnerships with experienced industry counterparties to ensure strong value creation through an identified pipeline of growth opportunities.”
Leading construction is ACLE Services, which announced on Wednesday that it has been tasked with Engineering, Procurement and Construction (EPC) of the DBESS portfolio – including the 20 phase two batteries totaling 100MW/200MWh that will be installed in Victoria, South Australia, and New South Wales.
ACLE says commissioning of the battery systems is planned to be carried out progressively to July 2025, with the company also being called on to operate and manage the batteries under a long-term O&M contract.
“ACLE is committed to providing the critical energy infrastructure the nation needs, on time and on budget, and our track record shows this,” the company’s director, Brenton Moratto said on Wednesday.
“We are keen to continue to contribute to Australia’s renewable transition, ensuring its sustainability through robust storage infrastructure.”
Powercor, meanwhile, says it is happy to collaborate on the connection of third-party batteries to its network.
“Powercor has already connected more than 2.6GW of renewable generation and storage,” a spokesperson for the DNSP told Renew Economy.
“We’re home to four of Victoria’s six Renewable Energy Zones and we’re always looking for ways to make it easier for more clean energy to connect to our network.”
“We MUST respect this earth - it is all we have
Claudio Dametto - South Australia
“I will always Vote to Preserve Our World.
Liam McGregor - Western Australia
“A simple message that even a politician can understand
Felicity Crombach - Victoria
“Please show you care about our future generations!!
Phil Harmer - New South Wales
“Save our world , Life & health before profits.
Kerry Lillian - New South Wales
“Close down all coal mines and Do not mine gas . Make these Companies
Daniel Johnson - New South Wales
“We want carbon free energy!
Edan Clarke - New South Wales
“Feels good to be taking a voter action step
Beaver Hudson - New South Wales
“Great Initiative. Let’s Hold elected officials Accountable to their bosses, us!
John Paul Posada - New South Wales
“We need actions not words we need honest democratic govt We need a pm
Bob Pearce - South Australia
“Thank you for this great resource. I was feeling helpless. Even this small step
Silvia Anderson - Victoria
“If political parties continue receiving political donations, we will rarely have politicians working for
Dan Chicos - New South Wales
“I only vote for people who will take urgent action to restore a safe
Susie Burke - Victoria
“Current government is not representing the opinion of the majority of Australian to meet
Neil Price - Tasmania
“We are fighting to rescue our kids' future from those who seek to steal
Vanessa Norimi - Queensland
“No time to waste Now or Never My vote is for NOW
Rosalie White - Victoria
“I am only 9 but I already care
Ava Bell - New South Wales
“From New Lambton Uniting Church - Caring for our world is a moral imperative.
Niall McKay - New South Wales
“Our federal govt is an International climate Embarrassment - its about time they stepped
Oriana Tolo - Victoria
“Vote earth this time!
Sue Cooke - Queensland
“We are in one on the wealthiest countries in the world. we have the
rowan huxtable - New South Wales
“The climate Emergency is the public health opportunity and urgent priority of the 21st
Mike Forrester - Victoria
“If they want my vote they better act now
Barbara McNiff - New South Wales
“We need to act locally now for the earth. Our only home. Vote Earth
Anne Miller - New South Wales
“I often look at the places I've known all my life and see how
Jim Baird - New South Wales
“Strike one For people power!!! Democracy might prevail outside the current cronyism that faces
Lorraine Bridger - New South Wales
“Our federal politicians Are Afraid to make action on climate change a major election
Jennifer Martin - New South Wales
“climate election, let's go!
Fahimah Badrulhisham - New South Wales
“Great to see this website that is a focus on action for climate change
Lynette Sinclair - New South Wales
“Let’s show politicians and the Murdoch media that climate change is by far the
Jane Aitken - Australian Capital Territory
“If you want to stay in power You need to take action to stop
Jane Bulter - New South Wales
“We are all that stands between terminal climate change and the vulnerable. We are
Carol Khan - Queensland
“We need a Government that Believes this is real and not taking money from
Ken Gray - New South Wales
“I'm voting for my childrens future
Anneliese Alexander - New South Wales