South Australia to get ‘world’s largest virtual power plant’

August 9, 2016
LinkedIn
Twitter
Reddit
Facebook
Email

Credit: Sunverge
Australian power company AGL is to install the largest ‘virtual power plant’ in the world in Adelaide, South Australia using batteries from San Francisco-headquartered energy storage firm Sunverge Energy.

AGL will install 1,000 centrally controlled batteries in South Australian homes and businesses with a combined 5MW/7MWh storage capacity. The AU$20 million (US$15.4 million) project aims to help solve the state’s grid challenges and reduce the risk of power price shocks in the state. Last month saw a raging national debate over whether renewables had caused extreme electricity price hikes in the state with some claiming that renewables are being deployed too fast for the grid to cope. However new energy minister Josh Frydenburg said that there were a number of complex factors in the price hikes with renewables only a small part of the problem.

AGL has selected Sunverge batteries and control systems for phase one of the project. Sunverge received an ARENA-backed investment boost and its batteries are also being trialled in Queensland by Ergon Energy.

The Australian Renewable Energy Agency (ARENA) has conditionally committed up to AU$5 million funding for AGL’s South Australia project.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

ARENA chief executive Ivor Frischknecht said: “When small-scale batteries work together they become more than the sum of their parts. AGL plans to operate the batteries as a kind of virtual power plant, installing them alongside solar PV and linking all 1,000 systems with centralised monitoring and management software.

“The result is like adding a 5MW power station that can quickly deliver enough energy to power 1,000 South Australian homes where and when it’s needed most. This approach can ease local network constraints, displace gas power and complement the Victorian interconnector, especially during times of peak demand.”

Frischknecht added that the batteries make solar and storage more competitive and that the project could act as a catalyst for regulatory changes to allow for more virtual power plants in the country.

Virtual power plant

The virtual power plant uses cloud-based software to operate separate energy storage systems in unison to meet peak energy demand across an entire community or service area, helping consumers utilize their own rooftop-generated solar or stored solar power during peak demand periods and reduce their power bills.

Multiple storage systems acting together help to strengthen the grid and provide long-term bill reductions for consumers.

The project will be rolled out in three phases over 18 months. In the first phase up to April 2017, the first 150 customers in metropolitan Adelaide will be eligible to purchase a discounted Sunverge SIS 5kW / 7.7kWh energy storage system for AU$3,500, which includes hardware, software and installation. Solar customers are expected to achieve a seven–year payback period.

Later phases will see an offering to narrower zones within metropolitan Adelaide where peak demand management and other network support services can be demonstrated.

17 March 2026
Sydney, Australia
As we move into 2026, Australia is seeing real movement in emerging as a global ‘green’ superpower, with energy storage at the heart of this. This Summit will explore in-depth the ‘exponential growth of a unique market’, providing a meeting place for investors and developers’ appetite to do business. The second edition will shine a greater spotlight on behind-the-meter developments, with the distribution network being responsible for a large capacity of total energy storage in Australia. Understanding connection issues, the urgency of transitioning to net zero, optimal financial structures, and the industry developments in 2026 and beyond.
15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

March 12, 2026
In this US news roundup, we have financing updates for GridStor, Arevon, and Primergy, related to energy storage projects in Texas, California, and Nevada, respectively.
March 12, 2026
Australia’s battery energy storage sector faces mounting operational pressures, following the Australian Energy Market Operator (AEMO) issuing its latest direction to AGL’s Torrens Island battery energy storage system (BESS) on 9 March.
March 11, 2026
Energy firm RWE added 2GW to its US operating capacity in 2025, bringing its total operational capacity to nearly 13GW across the country.
March 11, 2026
Energy storage developer-operator Aypa Power, and Six Nations of the Grand River Development Corporation (SNGRDC) have closed CA$700 million (US$512 million) for two battery energy storage system (BESS) projects in Ontario, Canada.
March 10, 2026
Residential energy storage startup Base Power is collaborating with utility Denton County Electric Cooperative (CoServ) to deploy 100MW of residential energy storage across North Texas, US.