The Australian Capacity Investment Scheme (CIS) is set to increase energy storage capacity in Victoria and South Australia with support for six new large-scale battery projects.
The initiatives represent a capacity of 3.6 gigawatt hours (GWh) and are part of the government’s commitment to increase the controllable capacity for renewable energy and the reliability of the grid.
In Victoria, EnergyAustralia will operate the Wooreen 350MW lithium-ion battery system at the Jeeralang power station site in Hazelwood North.
Project Power will also develop the Springvale Energy Hub, a 115MW lithium-ion battery system, on a former landfill site in Melbourne’s south-east.
South Australia’s energy landscape is being expanded with Pacific Green Energy’s Limestone Coast West 250MW lithium-ion battery near Mount Gambier and Zen Energy’s Solar River 170MW lithium-ion battery, which will join a 230MW solar farm north of Adelaide.
Pacific Blue will operate the Clements Gap 60MW lithium-ion battery at the Clements Gap wind farm and EnergyAustralia will own the Hallett 50MW lithium-ion battery at Canownie.
The allocation from the CIS tender will provide Victoria with 1,630 megawatt hours (MWh) of additional capacity and South Australia with 1,996 MWh.
It is estimated that these batteries, which can operate for up to four hours, could provide controllable power to meet peak electricity demand for one million households.
The projects, which are subject to the signing of a capacity investment plan agreement, are expected to be operational by mid-2027.
The CIS aims to stimulate new investments in controllable renewable energy capacity, such as battery storage and solar and wind generation, to meet growing electricity demand and fill reliability gaps resulting from the gradual closure of older coal-fired power plants.
The Australian government has also indicated that there are currently two more CIS tenders ongoing, with the next tender expected to take place in late 2024.
In August 2024, the Australian Senate approved the Net Zero Economy Authority (NZEA) bill, which is a step towards establishing an independent statutory body for the country’s energy sector.
“Australian government backs six new battery storage projects” was originally created and published by Energy technologya brand of GlobalData.
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