Work begins on South Australia’s biggest battery, next to proposed gas plant

Alinta Energy says it has begun work on the first stage of what will be the biggest battery storage project in South Australia, to be built next to a proposed peaking gas plant that was first proposed nearly a decade ago.

The Reeves Plains Energy Hub will be sized at 500 MW and 2,000 MWh, making easily the biggest in the state and one of the biggest in the country. Alinta says it is already committed to a 250 MW, 1,000 MWh first stage and has appointed GenusPlus as its main contractor. The 194 battery modules will be supplied by Chinese giant CATL.

“We’re not just planning energy storage anymore – we’re building it,” said Andres Maasing, Alinta Energy’s chief development officer, said in a statement.

.“Early works are underway, procurement is well advanced, and the site is being prepared for the build. We’re also talking to neighbours and the community about what construction will mean for them.”

Alinta says that actual construction of the new battery won’t start until early 2026, with the project expected to be complete in 2028, by which time South Australia could have reached its government target of 100 per cent net renewables (officially targeted for the end of 2027).

South Australia is already sourcing 75 per cent of its local demand from wind and solar (averaged over a year), which is the highest in the world. It is rapidly expanding its big battery storage facilities, with seven already in operation, or commissioning, and another seven in construction, and many more, like Reeves Plains, in the pipeline.

Reeves Plains would be the biggest battery, overtaking the Limestone Coast battery which has also started construction of its first stage. The current biggest battery on the grid is the 238 MW, 477 MWh Blyth battery owned by Neoen.

The Reeves Plains battery will be Alinta’s first in the National Electricity Market, the country’s main grid, although it is also building the 100 MW, 200 MWh Wagerup battery in Western Australia, and built the Newman battery in the separate grid in the Pilbara that is now owned by APA Group.

South Australia is also keen to upgrade its reserve gas capacity, particularly because it has no existing hydro, and no short term prospects to deliver long duration storage for the sort of wind droughts that the state has suffered over the last four days.

Many of its existing fleet of gas fired generators are ageing and due to be retired soon. Alinta’s proposed 300 MW gas generator, which got development approval in 2018, is located next to the main Moomba gas line and adjacent to an existing ElectraNet transmission line.

Alinta still has to make a final investment decision on the gas plant, but gas turbines are not easy to buy, and the prices are rising sharply, in contrast with those of battery storage. The fact that the battery is being built first says a lot about the economics and market opportunities for the two respected technologies.

It’s expected that Alinta will put the battery project in the mix for underwriting under the Capacity Investment Scheme and the gas proposal could also be submitted to a state-run capacity scheme, although the terms of that are yet to be finalised.

Meanwhile, Alinta has confirmed that its owners, the Hong Kong based Chow Tai Fook Enterprises, are looking at options for a potential sell-downr. It has been speculated that talks could be held – at least by their respective investment bankers – with utility giant EnergyAustralia.

Alinta says it is looking at all options. “The company remains open to exploring options with various parties as part of its broader strategy,” it said in a statement. “There is no certainty that discussions with any party will develop further.”

Meanwhile, Alinta says it is working with the local community, council and others to “shape a benefit sharing program that reflects real local needs” for its Reeves Plains battery project.

GenusPlus says its $105 million contract includes design and engineering, equipment supply, civil construction, mechanical and electrical installation works, construction of the 275kV Switchyard and connection to Electranet’s high voltage network; as well as testing and commissioning.

For more information please check out Renew Economy’s Big Battery Storage Map of Australia