Australian large-scale battery projects compete for ARENA funding support

LinkedIn
Twitter
Reddit
Facebook
Email

Nearly A$4 billion (US$2.72 billion) of battery projects in Australia are in the running to receive financial support from the Australian Renewable Energy Agency (ARENA).

ARENA opened up its Large Scale Battery Storage Round at the beginning of this year, offering A$100 million in support for projects of 70MW or larger, which would use advanced, aka grid-forming, inverter technologies.

The agency said today that it has now shortlisted 12 projects totalling 3,050MW/7,000MWh out of a pool of 54 from which it received Expressions of Interest (EOI). The successful dozen, which have a total value of A$3.7 billion, and requested a total A$297 million of grant funding, are now invited to submit full applications.

They have until 20 July to do so and a decision is expected to be announced before the end of this year.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

As reported by Energy-Storage.news in January shortly after the round launched, maximum grant value is capped at A$35 million per project and ARENA said at the time it expected to support at least three projects.

It won’t be the first time ARENA has supported battery storage projects, nor the first time it has supported battery projects with grid-forming capabilities.

The first example of the latter was the Energy Storage for Commercial Renewable Integration (ESCRI) project in South Australia, which uses advanced inverters at a 30MW/8MWh battery energy storage system (BESS) supplied by Hitachi ABB Power Grids (now Hitachi Energy).

ESCRI was commissioned in 2018. It provides synchronous inertia and therefore grid stability to a remote region at the far end of transmission lines which has seen its local share of renewable energy – mainly rooftop solar and large-scale wind – grow rapidly.

Synchronous inertia is a vital application that has traditionally been done by thermal power plants that provide large rotating mass to the system.

Earlier this year, Energy-Storage.news reported that a 50MW/50MWh BESS in the Broken Hill region of New South Wales will demonstrate the same capability. BESS system integrator Fluence signed an agreement with utility AGL to supply systems to that project, with ARENA providing A$14.84 million of it’s A$41 million total expected cost.

Two existing large-scale battery systems in Australia – Hornsdale Power Reserve in South Australia and Wallgrove in New South Wales – are being retrofitted with grid-forming inverter technology which should be in place by the end of this year, ARENA said.

“Advanced inverters that can help stabilise the grid are the missing piece of the puzzle that will support the transition to 100% renewable energy penetration for short periods,” ARENA’s acting CEO Chris Faris said.

More generally, ARENA referred to the recently published Integrated System Plan (ISP) from the Australian Energy Market Operator (AEMO) which highlighted the critical need for large amounts of energy storage in the National Electricity Market (NEM) to maintain system stability as coal retires and renewables take over the lion’s share of generation.

Projects competing the new funding round must either be connected to the NEM or Western Australia’s Wholesale Electricity Market.

Read Next

August 22, 2025
State-owned utility Western Power has commissioned five new community batteries in Perth suburbs as part of a federally funded initiative in Western Australia.
August 21, 2025
ACE Power has confirmed the sale of the 103MW/206MWh Kerang grid-forming BESS in the Loddon Valley region of Victoria, Australia.
Premium
August 21, 2025
“It’s the most powerful BESS in the world,” Nick Carter of Akaysha Energy, tells ESN Premium after switching on the Waratah Super Battery in New South Wales, Australia.
August 21, 2025
CATL has partnered with renewable energy developer ACEnergy to supply 3GWh of battery energy storage systems (BESS) in Australia.
August 20, 2025
The Australian government has officially launched the AU$500 million Battery Breakthrough Initiative (BBI).

Most Popular

Email Newsletter