Global energy storage giant Fluence will build its second big battery in Victorian coal country after being selected by Tilt Renewables to deliver the 100MW, two-hour Latrobe Valley battery energy storage system (BESS).
Tilt said on Monday that delivery was underway of its 100MW/200MWh Latrobe Valley BESS south of Morwell, with construction slated to start in the fourth quarter of 2023, potentially just a few weeks away.
Tilt has chosen Fluence to build, service and maintain the 100MW/200MWh BESS under a 20-year long-term service agreement.
The project will use Fluence’s Gridstack grid-scale battery storage solution, underpinned by its AI-powered bidding software, Mosaic, and asset performance management software, Nispera, to optimise market trading and operational performance.
Fluence’s Gridstack technology is being used already in the Latrobe Valley for nearby 150MW/150MWh Hazelwood battery, which was officially commissioned in June at the site of what was once the country’s dirtiest coal generator, shut down in early 2017.
Victoria will need all of the energy storage capacity – both long duration and short – it can get, as quickly as it can be built, to achieve its 95 per cent renewables by 2035 target.
Already, the state’s solar and wind energy generators are delivering huge amounts of renewable energy to the grid on sunny and windy days, with the state experiencing a new record low in daytime demand on the weekend.
“The Latrobe Valley BESS will be critical to strengthening our renewable energy grid and ensuing we make the most of our renewable generation when it is abundant and cheap,” said state energy minister Lily D’Ambrosio in a statement on Monday.
But significant amounts of new wind and solar as well as storage will be needed to replace the three big coal generators in the Latrobe Valley that will retire by 2035 – Yallourn in 2028, and Loy Yang A and Loy Yang B in the early 2030s.
Alongside its renewables and dedicated offshore wind energy targets, the Andrews Labor government has set goals to install 2.6GW of storage capacity by 2030, with an increased target of 6.3GW of storage by 2035.
“Victoria is home to big batteries and our ambitious energy storage targets are ensuring we continue to attract investment to our state,” added D’Ambrosio.
Tilt, which will also partner with AusNet to deliver the Latrobe Valley big battery, says the BESS near Morwell will store power at times of excess supply, like on the weekend, and release it again during periods of high demand.
“It is projects like these, in tandem with other renewable investments, that will help all Victorians continue to enjoy reliable power during the energy transition,” said interim CEO Steve Symons.
“Latrobe Valley BESS underpins Tilt Renewables’ place as a leading renewable energy company in Australia,” Symons added.
“We believe that it is going to take a mix of generation and storage projects to rapidly drive the transition to renewables.”
“Fluence’s wealth of experience and track record in delivering reliable energy storage solutions aligns with our plan to help drive the transition to renewables in Victoria and Australia,” Symons said.
See RenewEconomy’s Big Battery Storage Map of Australia
