Fund proposes distributed “hive” concept for series of 200MWh battery systems

An Australian investment fund is proposing to build a series of distributed batteries across regional areas of NSW, creating a “hive” of storage installations that will create linked battery systems of up to 200MWh each.

Th plan, proposed by the Clean Energy Transfer Fund, will kick off in the Hunter Valley, where the fund proposes to install “Hive systems” of up to 10 small 4.9MW Sungrow battery units, amounting to total capacity of 49.5MW with four hours of storage (200MWh).

The rationale behind the proposal is that the battery units, because they are sized at less than 5MW, will have less strict connection rules, and the fund’s founder Rob Ashdown says there are no shortage of farmers willing to rent out a small portion of their land for the battery systems.

Ashdown says planning has commenced for more than twenty battery energy storage systems – or two Hive systems – in the Hunter Valley. He says there has been strong “support” from network operator Ausgrid, with many to be located near local substations.

Ashdown says “hundreds more” such battery systems are planned across New South Wales, with other states to follow.

“The world is decarbonising, but without urgent investment in quick, coordinated and dispatchable storage, Australia will struggle to meet our ambitious targets,” Ashdown said in a statement.

“Large grid-scale batteries have long lead times, require massive capital investment, and are competing for funding in an increasingly competitive environment.

“Project Hive is a smarter way to help Australia’s energy networks evolve. Our innovative Hive concept allows us to rapidly and efficiently deploy coordinated and cost-effective energy storage solutions, which could play a major role in Australia’s renewable energy transition.”

Ashdown says the first two Hive systems will be located across privately-owned rural properties close to Ausgrid substations in the Hunter Valley, including Seaham, Polkobin, Rothbury, Denman, Aberdeen and Scone in the Muswellbrook region.

“We’ve been blown away by the response from local landowners, many of whom are keen to help support the renewable energy transition by renting out a small corner of their property,” Ashdown said.

“The positive response from landowners, network operators and regulators, means we will now move into other parts of NSW, while also planning for expansion into Victoria and Queensland and later into Western Australia.”

A spokesman for Ashdown said the first of the battery systems would be commissioned in the first quarter of 2024. He said the batteries would be financed by a mixture of equity and debt.

He said the battery systems would be trading as a merchant operator in the wholesale power market, and will also providing “firming” and grid services, such as FCAS (frequency control), when the opportunity arises.