Within the renewable energy industry it is well known that one way to ensure that the energy transition is both manageable and secure is through large-scale, grid-connected battery storage systems (BESS).
Large-scale BESS are set to become key participants as renewable energy capacity increases. In Australia, it is expected that installed utility-scale battery capacity will double within the year.
At the moment, there are 11 BESS projects in Australia with 10MW or more, for a total capacity close to 750MW and almost 1GWh of energy storage. Apart from 2 projects in WA providing support services to mine sites, most of these projects have focused on supplying ancillary services, which have provided them with better-than-expected revenues.
We just saw news about how BlackRock acquired Akaysha Energy, an Australian battery storage developer and its portfolio of 9 projects. It committed to more than AUD $1 billion to support the build out of battery assets. They see the Australian energy market as an opportunity to experience the ins and outs of the business and later replicate those learnings in similar grids around the world.
As most companies around the world lay out plans to increase their renewable capacity, interest in battery storage is set to grow and here in Australia there is more than enough to lead this part of the energy transition.
But what is it about Australia that stands out from the rest and makes it a large-scale BESS global leader?
-Is it because Australia is one of a few countries in the world that currently mines (mining experts) or is about to mine all the raw materials required to produce lithium-ion batteries? -Is it because there is a well-established regulatory framework and an increasingly sophisticated power system? -Is the Australian expertise in battery management systems and battery pack design (Energy Renaissance and Redback Technologies, for example)?
The idea of a battery made entirely in Australia, from ores to the cell, may not be far off!
– We’d love to get your thoughts on this!
The team at Incite Energy knows there is a massive amount of work around the corner and securing resources seems to be critical in the current scenario.