NSW sets new long duration storage target as it readies for grid after coal
The New South Wales (NSW) Labor government has announced a new target for long duration storage as it prepares the country’s biggest state grid for life after coal.
The state has already set a target of 16 GWh of long duration storage by 2030, but to help fill the gaps between wind and solar output, and shorter duration storage, it has now announced a new target of an additional 12 GWh by 2034.
The announcement comes as state energy minister Penny Sharpe announced that the government would not reduce the 8 hour requirement for long duration energy storage, as had been mooted in recent months.
In a speech at state parliament, Sharpe said the government has chosen to set a new target based on eight hour storage rather than fiddling with the terminology.
The 2034 date is significant because it is around that time that the last of the state’s four coal generators could be retiring, although units at Bayswater and Mt Piper could remain on a seasonal basis.
Part of the problem is that long duration energy storage is more expensive than similar technology running at shorter durations, and the full capacity is less often used.
Pumped hydro, which is likely to be needed to meet the state’s legislated targets, has found the market particularly challenging despite the eight-hour duration requirement.
The technology struggles to compete with lithium ion batteries on price, as it takes longer to build and has higher upfront capital costs, and it has less flexibility to operate in multiple energy markets.