Zen Energy says it has begun construction on the Templers battery near Adelaide, which will be the second biggest in South Australia, which already leads the world in the share of wind and solar in its grid.
The 111 MW, 291 MWh is one of a number of new batteries that are being built as South Australia accelerates towards its fast-tracked target of net 100 per cent renewables by 2027. It has already averaged more than 71 per cent over the last 12 months.
“South Australia led the pack when we invested in the Hornsdale Power Reserve, and our state is now home to six grid-connected batteries with a total capacity of more than 500MW,” state energy minister Tom Koutsantonis said in a statement.
“These investments are a big vote of confidence in our state’s ambitious plan to get to net zero emissions in energy production by 2027, and to help the world along the pathway to decarbonisation.“
The Templers battery, to be located 60kms north of Adelaide, is expected to be operational in 2025, and will created 180 jobs during construction. It is being constructed by Consolidated Power Projects Australia, and will use equipment supplied by Sungrow Power and Shanxi Electric Power.
It will be the first big battery and the first wholly owned major asset in the portfolio of Zen Energy, which has emerged as a leading national renewable energy retailer.
It has key supply contracts with the South Australian government, Bunnings, CSIRO, as well as a network of councils in New South Wales. Its total contracts now amount to more than one terawatt hour.
Zen Energy’s Anthony Garnaut said the company has sourced finance from Stonepeak, Peak Energy, Natixis Bank, and Future Super, which is investing $30 million in the company’s corporate notes.
It has a “tolling” arrangement, which is a term now used for battery projects that effectively go “merchant” seeking revenue from arbitrage, frequency control and other services markets.
Zen Energy is also looking at construction of the Solar River Battery and Solar Project in South Australia. It says the storage is key to developing its renewable energy retailing contracts.
See also RenewEconomy’s Big Battery Storage Map of Australia.
