Western Australia CIS tender awards four battery projects totalling 654 MW

Four new big battery projects in Western Australia (WA) have been named in the state’s first Capacity Investment Scheme (CIS) tender, which combined, equate to 654 MW and 2,595 MWh capacity, enough to supply the peak electricity load for over 600,000 homes for four hours.

Nearly seven times more capacity than tendered attracted developers resulting in the government being able to secure more storage than originally planned.

Federal Climate Change and Energy Minister Chris Bowen said the government is working renewable investment into the energy grid at record levels.

“Now we’re seeing investors and developers outcompeting each other for the chance to deliver even more of the cheapest form of energy for Western Australia this decade,” Bowen said.

“Peter Dutton wants to stop the renewable rollout, and squander Australia’s natural advantages the sun and wind resources that are the envy of the world.”

The successful projects exceeded the 500 MW tender size and a criterion for the tender is that they are operational by October 2027 and could demonstrate the ability to reduce the wholesale cost of electricity, and boost reliability across the state’s Wholesale Electricity Market (WEM).

The successful projects include PGS Energy’s 324 MW Boddington Giga Battery at Marradong, 120 kilometres southeast of Perth and Atmos Renewables’ 100 MW Merredin Big Battery, 230 kilometres east of Perth.

Neoen’s 150 MW Muchea Big Battery, 43 kilometres northeast of Perth and Frontier Energy’s 80 MW Waroona Renewable Energy Project – Stage 1, 120 kilometres south of Perth complete the four successful bids.

The projects will back up WA’s South West Interconnected System (SWIS), which includes Perth, and ensure reliability particularly at times of peak demand.

The successful projects in the tender have also committed a total investment of $145 million (USD 91 million) in shared benefits to local project communities and $41.5 million in initiatives for local First Nations groups.

They will spend more than $712 million on local content and bring a $63.5 million boost to local employment including through funding for locally based vocational education and training programs and commitments to employ local apprentices.

On average about a third of the WEM already comes from cheap, clean, reliable renewables, with a record breaking peak last year of more than 84%.

The next WA tender for generation and storage is scheduled for mid-year, with consultation now open for feedback on tender design.