Delta leans in to life after coal, names partner for Vales Point battery project

Delta Electricity says it has found a partner for its foray into battery storage, choosing South Korea’s Samsung to figure out what a large-scale project at the ageing Vales Point coal power station in NSW might look like. 

The capacity and duration of such a battery is not yet settled, but Delta hopes to make a financial investment decision by early 2026.

Samsung has a long history in Australian big batteries and supplied the supplied the kit for the comparatively tiny 30 MW/8MWh battery on the Yorke Peninsula near AGL’s 90 MW Wattle Point wind farm, the second big battery to be built in South Australia after the initial “Tesla big battery” at Hornsdale.

One of its most re this year dent projects is in Hay in southwest NSW, where it wants to build a 250 MW solar farm accompanied by a 150 MW, 600 MWh battery, with a separate standalone 200 MW/800 MWh battery at the same location.

Naming a partner like Samsung to lead the battery project shows Delta is aware of the need to plan for life after coal, and capitalise on the Vales Point location which is a hub for transmission infrastructure on the NSW central coast.

Delta – now controlled by Czech-based energy group Sev.en – intends to shut down the 1320 MW power station in NSW in 2033, having decided last year to extend its closure date by nearly four years.

The company says the Vales Point site is “uniquely positioned” to participate in the energy transition after the coal-fired units are closed. It will follow other coal plant operators also choosing battery storage, including the nearby Munmorah and Eraring batteries, Liddell, Mt Piper, Hazelwood, Stanwell, Tarong and Swanbank.

See Renew Economy’s Big Battery Storage Map for more details.

“The Vales Point power station continues to be a key asset in the transitioning energy market by providing essential firming capacity to support the growing integration of renewable energy and ensuring a reliable and secure source of electricity,” CEO Richard Wrightson said in a statement, 

“The partnering agreement brings together two major players in the energy space to explore the key role that Vales Point can continue to play in ensuring energy security into the future.”

Delta first suggested it might look at batteries – alongside investing in new gas peaking plants – in August last year.  It did so at a time when the lack of support for coal couldn’t be more clear.

In October, Delta said banks were refusing guarantees for its Vales Point B unit, Australia’s oldest operating coal fired power generator. 

One of Australia’s oldest operating coal fired power generators, Vales Point B, says it has been refused bank guarantees on loans expiring at the end of 2024 with 13 of its 15 lenders ruling it out on ESG grounds.

The other two institutions offered some finance, but only in relation to mine rehabilitation and renewable energy power purchase agreements.

Delta then went to the market regulator for a rule change or exemption to allow it to continue operating by holding cash, rather than bank debt facilities, to meet its prudential requirements.

The Australian Energy Market Commission (AEMC) process for this rule change is still open.