Australia’s First Long-Lasting Lithium-Ion Battery Storage Plan Is Approved by RWE

In addition to investigating more environmentally friendly energy options in the area, RWE is starting a large 8-hour battery storage project in New South Wales. A 50MW/400MWh battery system is being invested in by the German energy business near the 249MWac Limondale Solar Farm, which is situated near Balranald, NSW.

More than a year ago, RWE secured a long-term energy contract from the New South Wales government. AEMO Services, a division of the Australian Energy Market Operator, oversees bids for the state’s 10-year energy plan, with developers competing for projects and access to five planned Renewable Energy Zones (REZs).

The Limondale Battery Energy Storage System (BESS) will be built within the NSW South West REZ and connected to the grid via existing substation infrastructure. These REZ projects across Australia will incorporate wind, solar, battery storage, and potentially green hydrogen technology. The Limondale project will utilize Tesla Megapack lithium-ion BESS, with construction expected to begin in late 2024 and finish by the end of 2025. Australian renewable energy and infrastructure specialist Beon Energy Solutions will provide the necessary equipment.

NSW Expands Tenders for Long-Duration Storage and REZ Access

In order to guarantee financial stability for its energy storage project, RWE and NSW have inked a 14-year agreement. RWE will receive compensation from the state if earnings are below expectations, and the government will receive a portion of any surplus profits. This project is the first 8-hour lithium-ion battery project in Australia.

NSW has also launched a new tender for long-duration energy storage (LDES) as part of its Electricity Infrastructure Roadmap. This includes bidding opportunities for up to 1GW of projects and 3.98GW of access rights in the South West REZ.

The rise in tenders highlights the challenge of establishing long-duration storage facilities under current market conditions, which favor shorter-duration lithium-ion BESS for profitability. To address this, Australia’s National Battery Strategy aims to support a diverse range of energy storage technologies and market reforms.