AGL breaks ground on Broken Hill big battery as AGM looms

AGL Energy has broken ground on its ARENA-backed Broken Hill battery, a 50MW/50MWh lithium-ion BESS that will provide system strength services in the far west of New South Wales.

The gen-tailer launched construction of the $41 million project on Thursday at an official sod-turning ceremony at the site.

First announced in March, the grid-scale lithium-ion battery is being supplied by Fluence and its consortium partner Valmec.

Backing from the Australian Renewable Energy Agency allows ARENA to test the battery’s capabilities in what it describes as “some of the most challenging conditions” on the NEM.

“As Australia’s electricity system switches to higher rates of renewables it will be increasingly important to deliver storage solutions that have the capabilities to stabilise the grid,” said ARENA CEO Darren Miller at the sod-turning.

“AGL’s Broken Hill Battery allows us to test advanced inverter technology in some of the most challenging conditions for the grid, while also improving system security and stability in the region.”

A green shoot in troubled times

For AGL, the sod turning is a solid bit of progress in what has been a tumultuous time for the gen-tailer – a failed demerger, a major change of the guard in the company’s executive ranks, and ongoing shareholder tension ahead of an annual general meeting next week.

Some of AGL’s biggest and most influential shareholders, including billionaire activist Mike Cannon-Brookes, are pushing for more new blood on the company’s board, and more ambition in the shift to renewables and the exit from coal.

AGL general manager for energy hubs, Travis Hughes, said on Thursday that construction of the battery marked important progress towards the company’s new interim target of 5GW of wind, battery, pumped hydro and other low carbon firming projects by 2030.

“The new Broken Hill battery is another exciting step for AGL, with the battery playing a crucial role in supporting renewable energy supply and ensuring communities in western New South Wales have access to reliable energy,” Hughes said.

“AGL has been part of the Broken Hill community since 2015 through the Silverton Wind Farm and Broken Hill Solar Plant and we are proud to continue to deliver renewable power to households and businesses in the area.”

The project is expected to provide up to 50 jobs for engineers, tradespeople and other contractors during construction and to come online in 2023.