One of the biggest battery projects under development in Australia – and one of the first eight-hour batteries to win an underwriting agreement through the New South Wales government’s Electricity Infrastructure Roadmap – has locked in a supplier.
Ark Energy said on Wednesday that it has signed an agreement with Hanwha Energy to supply the 275 megawatt (MW) and up to 2,200 megawatt-hour Richmond Valley battery energy storage system (BESS) it is developing south of Casino in northern NSW.
Ark says it identified Hanwha Energy as the preferred bidder in November 2024, following a “rigorous and competitive bidding process” launched after the project was awarded a Long-Term Energy Service Agreement (LTESA) in December 2023.
Under the supply contract, Ark says Hanwha Energy will manufacture, deliver and install a complete lithium iron phosphate BESS solution, including batteries and inverters, along with commissioning services.
“Signing of the contract is a key milestone for the Richmond Valley project,” a company statement said on Wednesday. “The BESS is due to be delivered in 2026 and Ark Energy aims for the project to commence commercial operations by 2027.”
News of the latest milestone for the huge battery project follows hot on the heels of its inclusion – alongside the 500 MW solar farm Ark is also developing at the site – on the inaugural National Renewable Energy priority list, announced over the weekend.
The list – agreed by state and federal energy ministers – identifies 56 projects spread across renewable energy generation, storage and transmission projects that will have “priority” status as Canberra and individual states rush to meet their renewable energy targets.
As Renew Economy reported, the inaugural list identifies 24 transmission and 32 generation and storage projects, totalling 16 gigawatts (GW) of wind and solar capacity and 6 GW of storage capacity (of varying duration).
The Richmond Valley BESS remains the biggest battery project winner of LTESA tenders held by the NSW government, with the latest round taking in the 125 MW, 1,000 MWh Stoney Creek battery by Enervest, and the 100 MW, 800 MWh Griffith battery by Macquarie Group battery offshoot Eku Energy.
The tenders are a key part of the NSW roadmap to ensure that enough wind, solar and storage capacity is in place to allow the retirement of the state’s remaining coal fired power stations over the next decade.
All told, there will be more than a gigawatt and 14,000 MWh of storage capacity, and $3.5 billion of investment from this tender.
NSW energy minister Penny Sharpe says it means the state has locked in nearly half of its 2030 capacity target of 2 GW and two thirds of its 2035 storage target of 28 GWh (the pumped hydro project is expected to be on line in 2031). Another long duration storage tender is expected to be launched before the end of June.
