NSW Grants Contracts to Six Major 8-Hour Battery Projects, Australia’s Largest Included
The New South Wales (NSW) government has announced significant contracts to six major battery projects, marking a pivotal step in the state’s transition away from coal. Among these projects is the Great Western battery, which will be the largest of its kind in Australia, boasting an impressive capacity of 300 MW and 3,500 MWh. This initiative is part of a broader goal to bolster the renewable energy grid across the region.
Overview of the NSW Battery Projects
NSW officials describe this as the most extensive battery tender to date, both in scale and quantity. The winning projects will need to be constructed by 2030, and they aim to provide substantial energy storage to enhance grid reliability. A key focus is to ensure that these batteries can deliver at least eight hours of storage, addressing evening energy peaks and periods of low renewable output.
Details of the Selected Battery Projects
- Great Western Battery – Neoen Australia
Capacity: 300 MW, 3,500 MWh
Location: Near Lithgow, at the Wallerawang coal power station site - Bannaby Battery – BW ESS
Capacity: 233 MW, 2,676 MWh
Location: Southern Tablelands - Bowmans Creek Battery – Ark Australia
Capacity: 250 MW, 2,414 MWh
Location: Upper Hunter - Armidale East Battery – FRV Services Australia
Capacity: 158 MW, 1,440 MWh - Kingswood Battery – Iberdrola Australia
Capacity: 100 MW, 1,080 MWh
Location: Near Tamworth - Ebor Battery – Bridge Energy (with buy option for Energy Vault)
Capacity: 100 MW, 870 MWh
Location: Near Armidale
These projects collectively will deliver approximately 1.2 GW and 12 GWh of long-duration storage, surpassing the original tender expectations of 1 GW and 8 GWh.
Cost Reductions and Future Potential
The average annual costs associated with the long-term energy security agreements (LTESAs) have significantly decreased, lowering the NSW government’s maximum exposure. The average annual annuity cap has dropped to $150,000/MW and $14,000/MWh, compared to the previous tender caps of $180,000/MW and $23,000/MWh.
NSW Energy Minister Penny Sharpe has emphasized that these advancements equip the state to meet energy storage targets. “These six big batteries mean we’re on track to smash our storage targets,” she stated. The projects aim to harness renewable energy, promoting stability in pricing and paving the way for a reliable, renewable-powered grid.
Looking Ahead
In light of these developments, NSW is set to achieve its goal of having 2 GW and 16 GWh of long-duration storage in place by 2030. Additionally, a future tender for another 12 GWh of storage is expected to be announced soon. With another projected tender in 2027, the state is actively working towards enhancing the energy grid’s capacity and reliability.
The establishment of these battery projects represents a significant move toward a renewable future, preparing NSW to end its reliance on coal-based power generation.
