German energy giant presses go on Australia’s first eight-hour big battery

The German energy giant RWE has pressed go on its proposed eight-hour big battery in south-west NSW, and has decided to contract Tesla to supply its Megapack battery for the 400 megawatt hour (MWh) project.

The 50 MW, 400 MWh Limondale battery, which will be built next to RWE’s existing 249 MW Limondale solar farm near Balranald, will be the first eight-hour battery to be built in Australia after emerging as the surprise winner of the first long duration storage tender held by the NSW government last year.

The LDES tender had been designed to elicit interest from a number of pumped hydro storage projects, but these are finding it difficult as they negotiate planning approvals and are faced with a big increase in civil construction costs.

The Limondale battery has been awarded what is effectively an underwriting agreement through the Long Term Energy Service Agreement allocated by the NSW government. By eliminating risk at the lower end of the market, it means project developers can more easily obtain attractive financing deals, lowering the cost of the battery.

“RWE’s investment decision and signing of supplier contracts for the Limondale BESS project is an exciting step forward in our commitment to the Australian renewables sector and support of New South Wales’ renewable energy ambitions,” said Katja Wünschel, the head of renewables for RWE in Europe and Australia.

“As a battery storage pioneer, RWE develops, builds and operates innovative and competitive battery storage systems in Europe and the US, and soon here in Australia. We look forward to continuing to work with all stakeholders to help realise the country’s renewable energy goals.”

The Limondale battery will be joined by at least another two eight hour battery projects, following their success in the second LDES tender run by the state government late last year.

Ark Energy is to build a massive 275 MW, 2,200 MWh lithium-iron phosphate battery at Myrtle Creek, south of Casino in the north of NSW, while Lightsource bp is to build the 49 MW, 392 MWh Goulburn River battery in the upper Hunter Valley. All three eight hour batteries are being built next to existing or proposed solar farms.

A third LDES tender in NSW is now underway, with expectations that batteries will again be the dominant player but with hopes that one of the more advanced pumped hydro projects may get a look in.

Daniel Belton, the head of RWE Renewables in Australia, said Tesla will supply the technology and Beon Energy Solutions will provide the balance of plant works. The battery will connect into the existing sub-station with construction to begin in the second half of 2024 and commissioning planned for late 2025.

“RWE sees an increasing role for storage of varying durations to support Australia’s energy transition,” he said, noting that the company intends to develop up to 3 GW of renewable energy capacity in Australia by 2030.

The company plans to invest €55 billion on offshore and onshore wind, solar energy, batteries, flexible generation, and hydrogen projects by the end of the decade, taking its total green portfolio capacity to more than 65 GW. It says it is decarbonising its business in line with the 1.5-degree reduction pathway and will phase out coal by 2030.

See also Renew Economy’s Big Battery Storage Map of Australia.