Lumea, TransGrid’s commercial arm, commences a selective Expression of Interest (EOI) process for the development of a 300MW grid scale battery intended to be fully financed from private sector market participants without utilising government funding.
In a first for Australia, the large scale battery storage system will operate in the National Electricity Market from the Deer Park Energy Hub in Victoria, the key source of electricity supply for metropolitan Melbourne.
Lumea is engaging with energy sector organisations and renewable energy generators for participation in the project through a tender process to finalise choice of market participants.
Lumea’s Head of Infrastructure, Nigel Buchanan said this is a great step forward to accelerating Australia’s clean energy transition.
“Lumea is looking to demonstrate that batteries can be fully funded through the market. We know that the energy transition requires innovative pathways to reach its renewable targets. It is critical we also find new avenues to fund these projects through the market to allow the most effective use of all funding sources for lower cost energy.” Mr Buchanan said.
“Lumea is committed to the transition to a smarter energy future, and batteries are an important solution to the issues we face as renewable energy increases as the main source of Australia’s electricity generation. The Deer Park Battery will prove that grid scale battery energy storage systems are a good long-term investment to maintain reliability and security of the system, ultimately bringing lower energy costs to customers.”
The EOI process will confirm market interest and determine the optimal size and duration of the battery. It will also inform whether there are further opportunities to supply system reliability services to the grid, as the energy economy transforms towards greater renewable generation.
The Deer Park Battery will also optimise the use of renewable energy in Victoria and across the National Energy Market by providing energy storage services and dispatching power when most needed, as well as offering services to support grid reliability and system support.
Lumea is also scheduled to complete the first grid-scale support battery in NSW in October to futher test the use of grid scale inertia, which is also a first in the market.