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Released February 28, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Work is underway on one of the biggest battery energy storage systems (BESS) in the Australian state of Queensland.
Located in Ipswich, south of Brisbane, the AUS$330 million (US$216 million) Swanbank Battery project will have a capacity of 250 megawatts (MW)/500 megawatt-hours (MWh), capable of storing enough energy to power more than two-thirds of Ipswich for two hours each night when demand rises. Most of the power will come from solar generated across local rooftops. The battery, which will be commissioned next year, will be located on the site of the former Swanbank B coal-fired power plant outside Ipswich and forms part of the Swanbank Clean Energy Hub. The site was once home to the Swanbank A, B, C and D coal-fired power stations, but today, the gas-fired Swanbank E remains the only operating power station on the site.
The project, which will use Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) MegaPacks, is the first to be developed by CleanCo, the green energy utility set-up by Queensland that aims to shift the state to 70% renewables by 2032, and to 75% renewables by 2035. CleanCo wants to have 1,400 MW of new renewable energy by 2025 using wind, solar and battery technology. It said Swanbank is an ideal site for energy developments due to its grid connections. It is supported by a transmission network capacity of 1.2 gigawatts (GW) and has connections to the 110-kilovolt (kV) and 27-5kV networks through the existing Swanbank A, B and E substations.
Queensland Premier Steven Miles said, "My government will always champion projects that deliver cheaper, cleaner energy to Queensland households. It's why we are delivering big batteries in your neighborhood, and today marking the start of construction on one right here in Swanbank. It's because of new technologies like this that we will reach the ambitious energy targets put before parliament. Renewables are driving down the spot wholesale price of power below zero, which is why we will continue to invest in them."
CleanCo Chief Executive Officer Tom Metcalfe added: "This project marks our commitment to a sustainable energy future for Queensland, marking the beginning of the Swanbank Clean Energy Hub's transformative journey. The Swanbank Battery will add significant capacity for CleanCo to supply our customers with competitively priced, reliable clean energy around the clock."
Industrial Info is tracking 317 battery storage projects in Australia worth almost US$40 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Australia leads the global market for BESS spending, with the total pipeline of announced projects now exceeding 40 GW, according to market watcher Wood Mackenzie (Edinburgh, Scotland). It expects capacity buildout to accelerate, with battery system pricing expected to fall by 18% over the coming decade. It noted that two-hour grid-scale batteries are currently the most prevalent technology in Australia as project owners mainly target the high-value frequency control and ancillary services (FCAS) market. Project rollout is expected to increase as battery module pricing is expected to decline by more than 40% in Australia and South Korea by 2032 for both lithium-iron-phosphate (LFP) and nickel-manganese-cobalt (NMC) chemistries. This in turn will drive overall system costs down by 18% to 21% on a US$ per kilowatt hour (KWh) basis over the next 10 years.
Kashish Shah, senior research analyst at Wood Mackenzie, said: "The recent surge in renewable energy and competitive market design has made Australia one of the most attractive markets for grid-scale energy storage globally. Helped by the presence of competitive wholesale and frequency control markets offering diverse revenue streams for battery storage, and significant funding from the Australian government providing revenue certainty to storage projects. Because of this, we expect a 28% increase in the country's battery storage capacity from now until 2032."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Located in Ipswich, south of Brisbane, the AUS$330 million (US$216 million) Swanbank Battery project will have a capacity of 250 megawatts (MW)/500 megawatt-hours (MWh), capable of storing enough energy to power more than two-thirds of Ipswich for two hours each night when demand rises. Most of the power will come from solar generated across local rooftops. The battery, which will be commissioned next year, will be located on the site of the former Swanbank B coal-fired power plant outside Ipswich and forms part of the Swanbank Clean Energy Hub. The site was once home to the Swanbank A, B, C and D coal-fired power stations, but today, the gas-fired Swanbank E remains the only operating power station on the site.
The project, which will use Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) MegaPacks, is the first to be developed by CleanCo, the green energy utility set-up by Queensland that aims to shift the state to 70% renewables by 2032, and to 75% renewables by 2035. CleanCo wants to have 1,400 MW of new renewable energy by 2025 using wind, solar and battery technology. It said Swanbank is an ideal site for energy developments due to its grid connections. It is supported by a transmission network capacity of 1.2 gigawatts (GW) and has connections to the 110-kilovolt (kV) and 27-5kV networks through the existing Swanbank A, B and E substations.
Queensland Premier Steven Miles said, "My government will always champion projects that deliver cheaper, cleaner energy to Queensland households. It's why we are delivering big batteries in your neighborhood, and today marking the start of construction on one right here in Swanbank. It's because of new technologies like this that we will reach the ambitious energy targets put before parliament. Renewables are driving down the spot wholesale price of power below zero, which is why we will continue to invest in them."
CleanCo Chief Executive Officer Tom Metcalfe added: "This project marks our commitment to a sustainable energy future for Queensland, marking the beginning of the Swanbank Clean Energy Hub's transformative journey. The Swanbank Battery will add significant capacity for CleanCo to supply our customers with competitively priced, reliable clean energy around the clock."
Industrial Info is tracking 317 battery storage projects in Australia worth almost US$40 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Australia leads the global market for BESS spending, with the total pipeline of announced projects now exceeding 40 GW, according to market watcher Wood Mackenzie (Edinburgh, Scotland). It expects capacity buildout to accelerate, with battery system pricing expected to fall by 18% over the coming decade. It noted that two-hour grid-scale batteries are currently the most prevalent technology in Australia as project owners mainly target the high-value frequency control and ancillary services (FCAS) market. Project rollout is expected to increase as battery module pricing is expected to decline by more than 40% in Australia and South Korea by 2032 for both lithium-iron-phosphate (LFP) and nickel-manganese-cobalt (NMC) chemistries. This in turn will drive overall system costs down by 18% to 21% on a US$ per kilowatt hour (KWh) basis over the next 10 years.
Kashish Shah, senior research analyst at Wood Mackenzie, said: "The recent surge in renewable energy and competitive market design has made Australia one of the most attractive markets for grid-scale energy storage globally. Helped by the presence of competitive wholesale and frequency control markets offering diverse revenue streams for battery storage, and significant funding from the Australian government providing revenue certainty to storage projects. Because of this, we expect a 28% increase in the country's battery storage capacity from now until 2032."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
