Sydney-headquartered distribution network service provider (DNSP) Ausgrid is proposing two, battery energy storage systems (BESS), both in Newcastle and Sydney, New South Wales (NSW), both well in excess of $30 million (USD 19.7 million) given their state significant development (SSD) classification.
The Steel River East project in Newcastle and the Homebush project in Sydney are currently moving through NSW government major projects process and are proposed to both be 200 MW /400 MWh, equating to 112 Tesla Megapack 2XL units.
The sites are located adjacent to existing Ausgrid substations, avoiding the need to build new transmission infrastructure, reducing environmental and community impacts.
Ausgrid Group Executive Transmission Development and Growth Kelly Wood said transforming the energy grid to meet Australia’s net zero commitments and support the electrification and decarbonisation of the economy is one of its greatest shared challenges.
“Ausgrid is committed to expanding its role in the energy transition by supporting the delivery of meaningful amounts of energy storage on the distribution network,” Wood said.
“By utilising existing land and infrastructure, distribution connected batteries can support increased levels of local renewable energy generation, deliver improved network resilience and increased system stability, whilst also reducing environmental and community impacts caused by traditional network solutions.”
Wood said Ausgrid’s ambition is to facilitate over 1.5 GW of distribution connected grid scale storage on its network by the early 2030s.
“Ausgrid hopes to support this ambition through the development of Steel River East and Homebush, alongside a broader portfolio of storage solutions. We understand our regulatory constraints and are investigating and assessing all options for the construction and operation of these sites.”
Newcastle
In Newcastle, the Steel River East BESS comprises Tesla Megapack 2XL lithium-ion battery units, would be located in Mayfield West, 7 kilometres from the Newcastle CBD, and connect to the grid via a 33 kV underground cable to Ausgrid’s Mayfield West 132 kV / 11 kV zone substation.
Each Megapack unit includes battery modules, bi-directional inverter thermal management system, and AC main breaker pre-installed, which can store 15.6 MWh of energy and provide 3.9 MW of power, with round-trip efficiency of 87% and operational life of 50 years.
Proprietary optimisation software included in the Megapack learns and predicts local energy patterns, offering autonomous charge and discharge and seamless supervisory control and data acquisition (SCADA) integration, while fast response controls can integrate co-located renewables and enable market participation.
The Steel River BESS would also be located one minute away from the CSIRO Energy Centre and National Solar Energy Centre where research is conducted on solar thermal and photovoltaic technologies, and is powered by more than 300 kW of renewable energy infrastructure onsite, generating over 500 MWh of energy per year.
Sydney
The Homebush BESS, 15 kilometres west of Sydney’s CBD, would be adjacent to the existing 132 kV Mason Park sub-transmission switching station.
Like the Steel River BESS, Homebush will be a 200 MW / 400 MWh (2-hour duration) BESS and connect to the switching station via a 33 kV underground cable and generate enough energy to power 27,000 homes a day.
The BESS would also utilise the Tesla Megapack 2XL lithium-ion battery units.
A scoping report for the project says given the existing network capacity and adjacent land holdings, any comparable alternate network solution will likely come at higher cost and higher community and environmental impact than that proposed.
“The ‘do nothing’ option would not meet the objectives of the project or the demands on the NEM and is therefore not considered a feasible option,” the report says.
Ausgrid is the largest distributor of electricity on Australia’s east coast, providing power to 1.8 million customers through a network made up of substations, powerlines, underground cables and power poles, covering 22,275 square kilometres throughout Sydney, the Central Coast and the Hunter Valley.
Updated: 13 November 2024.
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If they are 400MWh each then the cost would surely be $300m each, not $30m wouldn’t it?
Hi Glenne, thanks for the pick up. You’re correct and the article has been revised. Ev