ARENA OKs AGL Energy on Australia’s largest grid-forming battery project

The 500 MW/1,000 MWh grid-forming battery has received $35m of funding.

AGL Energy reached a final investment decision (FID) for a 500 MW/1,000 MWh grid-forming battery in Liddell, New South Wales.

The project is set to be the largest battery with grid-forming inverter capabilities in Australia.

Last year, the Australian Renewable Energy Agency (ARENA) approved around $35m of funding for the project, as part of the Australian Government’s $176m Large Scale Battery Storage Funding Round.

The grid-scale battery will be situated over the retired Liddell power station, forming part of the Hunter Energy Hub. Initially planned as half the size (250 MW/500 MWh), AGL sought to expand the scope of the battery to provide important facility service to the Hunter vicinity.

ALSO READ: ACEN secures $197.6m sustainability-linked loan facility

The initial Large Scale Battery Funding Round had been granted to eight grid-scale battery projects across Australia. Each battery will be furnished with grid-forming inverter technology, providing them with essential system stability services traditionally through the synchronous generation of coal and gas.

AGL’s new grid-forming battery, alongside other battery projects, will represent a tenfold increase in grid-forming electricity storage capacity and will serve as one of the measures to aid Australia’s electricity system and transition to 100% renewable energy.

“As new solar and wind connect to our grids, we’re going to need increasing amounts of energy storage to continue to provide reliable electricity to our households and businesses. However, we’ll also need these new batteries to provide the crucial system security services that are currently provided by these traditional generators,” Darren Miller, CEO of ARENA, stated.