The winners of the ACT’s fifth Renewables Reverse Auction will build large scale battery storage systems in the ACT.
The big batteries will support the territory’s own grid, providing power to help avoid blackouts during periods of high demand and when large fossil fuel generators fail in heatwave conditions.
The delivery of large scale battery storage is further evidence that the Territory is the national leader when it comes to the transition to clean, renewable energy.
The latest round of the Government’s renewable electricity ‘reverse auction’ will help Canberra stay 100% renewable into the next decade and deliver the best pricing outcome for residents in the program’s history.
The winners of this round are Neoen, for Stage 1 of the Goyder South Wind Farm in South Australia and GPG, for Stage 2 of the Berrybank Wind Farm in Victoria. This will provide us with 200 megawatts (MW) of additional renewable electricity capacity into the grid.
We have also required the successful applicants to invest in our industry here in Canberra. This will allow the ACT to further develop our renewable energy industry and boost local investments to help create more jobs.
This auction delivered significantly lower prices than previous ACT auctions, with an average price below 50 dollars per megawatt hour, about a third lower than prior auctions. Neoen have been granted a 10-year feed-in tariff at $44.97 per megawatt hour. GPG have been granted a 14-year feed-in tariff at $54.48 per megawatt hour. The total cost of the FiTs from all auctions are expected to remain below $4.90 per household per week.
The locations of these batteries is to be determined.
As stated by ACT Climate Change and Sustainability Minister Shane Rattenbury:
“Canberra is proudly the nation’s climate action capital, and an internationally-recognised global climate action leader. Already, Canberra’s renewable energy and clean tech industries have attracted over $2 billion dollars of investment in large-scale wind and solar renewable infrastructure across Australia, and more than $500 million dollars of investment directly into the Canberra region.
“The ACT Government has today announced the two successful bids under the latest round of the Government’s renewable electricity ‘reverse auction’. This will help Canberra maintain 100% renewable electricity into the next decade, see the construction of two large-scale batteries in Canberra, and deliver the best pricing outcome for residents in the program’s history. The batteries will help support the Territory’s own grid, particularly providing power to help avoid blackouts during periods of high demand and when large fossil fuel generators fail in heatwave conditions.
“These big batteries mean that our small jurisdiction is again punching above our weight when it comes to real climate action. Our investment is on par with the Tesla Hornsdale battery on a per capita basis – the largest investment of its kind in the world.
The two winning renewable energy companies will build large-scale batteries, located in Canberra. As an indicator of their size, the Neoen battery has enough storage to power around 15,000 typical homes for an hour in the event of a blackout.
“We undertake these types of reverse auctions so that the ACT consumer can get best value electricity. This round has delivered the best pricing outcome to ACT households and businesses in the five rounds we’ve held.
“Today’s announcement means more investment in Canberra, more jobs, and more cutting edge research in renewables.
“We’re proud to put our climate first as we deliver a clean, green future for Canberra.”
