Why is eliminating gas so crucial? Gas peaker plants generate the most expensive electricity in the Australian grid.
Consequently, all electricity providers can match this high price, even if their electricity comes from free wind or solar power. Batteries can store the massive oversupply of daytime electricity produced by Australia’s abundant sunshine. Then, they can release it into the grid during peak evening demand (5:00 pm – 7:00 pm), thus displacing gas and lowering power prices for everyone.
Indeed, battery power already replaces gas during evening peaks, especially in Victoria, as noted in posts on X. Gas is the main driver of price hikes in Australia. If the grid can push out gas peakers, prices should drop. Batteries are already achieving this and have the potential to do even more.
As per Hot Copper, citing data from the grid collector NEMLog GPE2, “the record for battery charging surged to 766 MW on Sunday at 12:55 pm, marking an increase of over 110 MW from its previous peak of 650 MW set in January. At the moment of the latest battery charging records, prices across the main grid were predominantly negative, averaging minus $3 per megawatt-hour, especially in Victoria, where prices had dropped to minus $30/MWh.” This trend will contribute to pushing out gas!
Victoria hosts the nation’s largest fully operational batteries: the 300 MW, 450 MWh Victoria Big Battery, and the 150 MW, one-hour Hazelwood battery (strategically situated on the premises of a former coal-fired power station).
As per the Australian Electricity Market Operator (AEMO), the grid already boasts 1.4 GW of battery capacity, with an additional 4 GW in the development pipeline.
In the realm of renewable energy news, it seems that new battery installations or project expansions are frequently making headlines in Australia. Take, for instance, the recent announcement by the Queensland State Government, which entails doubling the scale of the proposed battery project at the Stanwell coal-fired power station near Rockhampton.
“The storage capacity will increase from 150MW/300MWh (two-hour duration) to a 300MW/1,200 MWh (four-hour duration) battery system.” Unfortunately, the coal-fired power station does not have plans for closure for another 20 years – maybe the renewable transition will surpass it by then?
Penny Sharpe, the Minister for Climate Change and Energy in New South Wales, has stated: “NSW is now approximately halfway toward our 2030 renewable generation target, and we’ve made progress amounting to over a quarter toward our long-duration storage goal.” The press release highlights various projects totaling more than 3 GW in potential capacity, with some slated for completion next year.
While South Australia gained renown for the Tesla Big Battery, which held the title of the world’s largest for a time, the state’s transition to clean energy is still ongoing.
With over 200 MW of battery capacity already operational, the state government aims to bolster its resilience further through initiatives like the AU$50 million Grid Scale Storage Fund and South Australia’s Virtual Power Plant.
By the end of next year, Synergy’s colossal Collie BESS project is slated for completion in Western Australia.
Collie, once a coal town resistant to renewables, has undergone a significant transformation. Previously, the council even voted against installing solar panels on rooftops. However, times have changed, and progress is swift. The Collie thermal coal-fired power station is set to be decommissioned by 2027.
The planned 2 GW battery storage capacity in Collie equals the total capacity of all batteries in Australia combined in 2022. The BESS is expected to deliver an output of 500 MW. With so many developments, it seems like Australia’s title for the biggest battery keeps changing hands!
Neoen, a prominent French independent power producer, is proposing the construction of another BESS at Collie.
Initially, this additional BESS would have a capacity of 200MW/800MWh, with the potential for expansion to 1GW/4GWh based on market demand. It’s worth noting that the Western Australian grid operates independently from the rest of Australia.
AEMO has implemented regulatory reforms concerning big batteries and virtual power plants to enhance their flexibility in providing a comprehensive range of services. Simplifications have been made to the rules governing bidirectional flows.
These reforms, effective from June 1st, will empower BESS to redistribute surplus energy from midday to peak evening demand periods, effectively smoothing out the duck curve.
Australia’s Federal Labour Government has recently unveiled its latest budget. Embedded within this budget, among numerous other provisions, is what Climate Council CEO Amanda McKenzie describes as “a vital signal” resonating throughout Australia’s entire economy.
The exclusion of gas and coal from the budget’s vision for a Future Made in Australia underscores the potential to construct our next era of prosperity on cleaner grounds.
Embracing a renewable future and cultivating a clean industrial base holds the promise of generating quality employment opportunities and fostering brighter prospects for Australians.
This initiative is pivotal in curbing climate pollution and safeguarding the future of our children. The budget represents a significant and long-awaited first step towards establishing our dominance as a leading force in the global clean energy market. Both political factions should lend their support to this vision for Australia. It transcends politics; it’s about securing our children’s future.”
Predictably, the opposition Liberal/National Party (Conservative) opposes this initiative (I suppose that’s within their purview). As an alternative, they advocate for nuclear power stations, which would be exorbitantly costly and take at least a decade to construct.
Ironically, their incumbent members find themselves in a predicament—none of their constituencies welcome the prospect of hosting a nuclear power station. After spending a decade in power refuting anthropogenic climate change, they seem poised to spend the next ten years disputing the efficacy of renewable energy in addressing the issue. It seems they champion OCD—obfuscation, confusion, and delay!
Chris Bowen, Australia’s Minister for Climate Change and Energy, highlights key allocations in the budget, emphasizing the focus on advancing innovation and bolstering the country’s renewable energy sector.
“The budget allocates $1.7 billion to the Future Made in Australia Innovation Fund, aimed at attracting private investment in emerging industries such as green metals and low carbon liquid fuels. Additionally, the government earmarks $1.5 billion to enhance solar and battery manufacturing capabilities to improve supply chain resilience. Furthermore, $1.9 billion is allocated to rejuvenate ARENA’s core mission of developing, commercializing, manufacturing, and deploying new renewable energy technologies.
The budget singles out hydrogen for increased attention and support, with a significant commitment of $6.7 billion over the next decade to accelerate Australian renewable hydrogen production.
This includes the introduction of a new production tax incentive of $2 per kilogram commencing in 2027–28, along with a $2 billion injection into the Hydrogen Headstart program to provide long-term support for the large-scale renewable hydrogen industry, which is integral for future green iron and steel opportunities.”
Bowen allocates $91 million to enhance the clean energy workforce, focusing on preparing workers for the jobs of the future.
This includes investments in training, apprenticeships, as well as facility and equipment upgrades across various sectors such as wind, solar, pumped hydro, large-scale battery, electricity networks, hydrogen, and more.”
The forthcoming release of the government’s “National Battery Strategy” is expected to provide additional details. This strategy will outline the potential transformation of Australia’s battery industry, aiming to elevate its position in the value chain. This initiative aligns with the Battery Breakthrough Initiative, which allocates $523.2 million over 7 years, as announced in the budget.
While this funding falls short of the provisions under the Inflation Reduction Act in the USA, it marks a promising start. Importantly, there were no new allocations for gas in this budget. The future appears promising, driven by battery power and electrification, especially as new Battery Energy Storage Systems (BESS) gradually replace gas.