Construction starts on first giga-scale battery project in South Australia

Danish energy giant Copenhagen Infrastructure Partners has announced it has begun construction of the Summerfield battery in South Australia, the first giga-scale battery project in Australia’s most advanced renewable energy state.

The battery, sized at 240 MW and 960 MWh, is located around 55 kms east of Adelaide, near Mannum in the Murraylands region of the state, and will add much needed storage to boost reliability and security in the state as it charges towards its target of “net” 100 per cent renewables by 2027.

CIP is one of the biggest renewable energy investors in the world, and is invested in what is expected to be Australia’s first offshore wind farm in Victoria.

Summerfield is its first battery project in Australia, and is one of half a dozen big battery projects currently under development in the state, including the Bungama battery that landed an innovative finance deal on Friday, and the Limestone Coast battery, which is committed to 250 MW and 750 MWh, but could be double the size.

The battery will feature Canadian Solar’s e-Storage battery system technology and the Canadian group will build and operate the project under a 20-year deal.

A 10-year off-take agreement has been signed with Origin Energy, Australia’s biggest energy retailer, and is part of its rapidly growing portfolio of owned and contracted battery storage assets, including the country’s biggest (700 MW and 2,800 MWh) at Eraring, where it operates the biggest coal generator.

“Australia needs large-scale battery energy storage solutions to stabilise the grid and deliver affordable power to homes and businesses when needed most,” said Jørn Hammer, the head of CIP Australia.

“We are proud to work with Canadian Solar’s e-Storage and Origin Energy to support the South Australian government’s 100 per cent renewable energy ambitions.

State energy minister Tom Koutsantonis says it is pleasing that CIP’s first Australian battery project is being built in South Australia.

“A four-hour 240MW battery can store enough energy to power at least 50,000 South Australian homes a day,” he said in a statement.

“This will deliver clear benefits to the state including improving the reliability and stability of the grid. It will also have local benefits for the south-east, including supporting over 100 jobs during planning and construction.”

Origin’s Head of supply and operations Greg Jarvis noted that the company will now own or contract a battery storage asset in each state that makes up the National Electricity Market.

“Origin’s battery portfolio, including the offtake from the Summerfield battery, will play an important role in helping firm increasingly variable renewable energy supply in the NEM and maintaining secure, reliable energy supply for customers,” he said.

It is also the biggest contract for Canadian Solar’s e-Storage in Australia. Its head Colin Parker said the project will make a significant contribution to South Australia’s 2027 target of 100 per cent net electricity generation from renewables.

The state has sourced 72 per cent of its local demand needs from wind and solar over the last 12 months, and intends to reach “net” 100 per cent renewables by 2027, making it the first major grid to reach that milestone in the world.

It means the state will produce enough wind and solar to meet average demand needs, but will import and export from and to other states, including via the new transmission link to NSW. The Summerfield project includes a transmission link that will boost the capacity of the south east renewable zone to 600 MW.

See also: Huge solar and battery project to help propel South Australia towards 100 pct net renewables and beyond