Grid-scale battery boom as US quarterly installs go up 32%, pipeline grows 45% year-on-year

According to the ACP report, 1,510MW of large-scale battery energy storage system (BESS) deployments were made in Q2 2023. Figures published earlier this year by research group Wood Mackenzie Power & Renewables – in association with ACP – showed 554MW grid-scale installs in Q1, while in Q4 2022, the number was 848MW.

Although solar PV led the way for Q2 with 2,740MW of large-scale additions, BESS placed second, ahead of the wind industry which deployed 968MW in the three-month period. ACP said the 1,510MW of new battery storage output corresponded to 5,098MWh of energy storage capacity, implying a continued growth in storage durations.

When reporting Wood Mackenzie’s Q1 2023 statistics in June, Energy-Storage.news noted that the clean energy sector had seen a slowdown in the first quarter, largely dictated by supply chain constraints and grid interconnection delays and waiting times.

ACP said the clean energy sector as a whole largely rebounded in Q2. In fact at 5,218MW combined solar, wind and battery installations, it was the second-highest Q2 figure recorded since the second quarter of 2021 when 7,189MW was installed. Around 9.4GW was installed across the three technologies from the start of the year to the midway point.

However, while both solar and wind install figures declined year-on-year from Q2 2022, solar by 1% and wind by 24%, there was a 32% growth in grid-scale battery storage installations.

Meanwhile, onshore wind’s pipeline was 6% shorter this quarter than in Q2 last year and although the pipeline of solar PV projects in development did grow 16%, this was dwarfed by a 45% growth in the battery storage development pipeline.

IRA boost for standalone storage development

That growth in pipeline can be attributed at least in part to the impact of the Inflation Reduction Act (IRA), ACP said. The IRA’s package of support for clean energy includes, for the first time, investment tax credit (ITC) incentives for standalone energy storage.

Whereas at the end of 2022, hybrid projects, mostly pairing solar with batteries, represented 70% of the total development pipeline for energy storage, as of Q2 2023, that has dropped to 56%. ACP also said that more than 60% of the 3GW of new storage projects entering the pipeline during the past quarter are standalone storage assets.

The US has now exceeded 11GW of cumulative installed grid-scale battery storage, having reached 11,071MW/31,066MWh as of the end of Q2 2023. At the end of 2022, those figures as reported by ACP had stood at 9GW/25GWh, including 4,027MW and 12,155MWh installed during last year.

The pipeline meanwhile includes 260 projects adding up to almost double that, at 21,069MW/59,925MWh, with the number of projects in development having grown solidly by around 14% for each of the past three successive quarters, ACP said.  

Our publisher Solar Media is hosting the 10th Solar and Storage Finance USA conference, 7-8 November 2023 at the New Yorker Hotel, New York. Topics ranging from the Inflation Reduction Act to optimising asset revenues, the financing landscape in 2023 and much more will be discussed. See the official site for more details.

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Lithium industry needs US$116 billion to achieve 5.7x ramp-up for 2030 goals

The analysis encompasses data from Rho Motion and the International Energy Agency (IEA) and shows that the industry would need to get to 5.3 million tonnes of lithium carbonate equivalent (LCE), 5.7 times higher than the 915,000 tonnes LCE production in operation today.

Benchmark analyst, Cameron Perks, said: “It’s almost impossible, and definitely a race against time. The big money that needs to be spent takes time to get approval for and to deploy. The players with skin in the game are the least likely to rush their spending. They don’t want to flood the market with lithium too quickly. They want to release it slowly to maximise their return.”

It should be noted that the IEA has tended to underestimate the cost reductions and deployments of renewable energy technologies.

One player with a lot of skin in the game is Albemarle, the largest lithium miner in the world with a market capitalisation of US$23 billion. This week it increased the lower end of its annual revenue guidance by 6% to US$10.4 billion off the back of higher average prices and “assuming recent lithium market prices continue through the rest of 2023”.

The company’s president of lithium, Eric Norris, said: “We don’t have the confidence to know exactly ourselves what the price is going to do, but we do know this: We believe that the market will continue to be quite tight next year as well.”

As Energy-Storage.news wrote a few months ago, the price of lithium carbonate has come down this year after the soaring highs of 2022, when it peaked at around 600,000 Yuan/tonne in November (data from Fastmarkets). It bottomed out at around 165,000 Yuan/tonne in April 2023 before starting to pick back up with it currently sitting at 264,500 (data from Trading Economics).

Some analysts do believe that the lithium market will become oversupplied in 2024 and 2025, with Bank of America commodity strategist Michael Widmer as one of those, cited by Fastmarkets.

Another industry figurehead to believe that lithium will not be able to keep up with demand is the CEO of US developer Spearmint Energy, speaking on market intelligence firm Modo Energy’s podcast recently.

Asked for his contrarian view by Modo CEO Quentin Draper-Scrimshire, Spearmint’s Andrew Waranch said: “Mining capital and growth is massively underfunded and will not be able to support all of those gigafactories. As the US is growing to 200GW, 500GW of storage, Europe will too, and Asia, South America and Africa. You’ll have a lot of factories being built but the mines will not be able to keep up with it over the long-term.”

“My contrarian view is that battery prices will go up and go up considerably. I think those investing in batteries today will find that assets will have appreciated in value just for the mineral content. People should be racing to install batteries today while the prices are reasonable.”

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Germany roundup: Tesvolt, Wirsol with 10MW+ projects, second life firm Voltfang raises €5 million

The containers, totalling 4MW of power and 10MWh of energy storage, will connected to a 12MWp solar PV plant in Lower Saxony, northwest Germany. It is the fourth project between Tesvolt and Green Energy 3000, a developer, and will bring the total energy storage capacity deployed by the pair to 18.3MWh, though the announcement didn’t say when it will come online.

The project was awarded a contract under the Innovation Tenders, which were launched in Germany a few years ago and pay an additional premium per kWh of energy discharged by co-located battery systems to the grid.

However, Philipp Schreiber, project manager for large-scale storage systems at Tesvolt, was critical of the Tenders’ stipulation that the energy storage facility cannot charge from the grid.

“Legislators need to take action to ensure the innovation tender remains an appealing tool for project owners. The current stipulation that battery storage systems are not allowed to store electricity from the grid, i.e. that they cannot run bidirectionally, must be changed as a matter of urgency. This is the only way for the available storage capacity to be used to full effect.”

“This would also add a clear additional incentive for investing in energy storage, as operators would be able to boost their profits by selling their storage capacity. In turn, this would quieten demand from project developers for higher feed-in tariffs.”

Similar criticisms were levied at the investment tax credit (ITC) for co-located energy storage in the US before it was expanded to standalone energy storage at the start of 2023.

Rooftop PV solution provider launches large-scale storage in central Germany

In concurrent news, Wirsol Roof Solutions is launching a 10.35MW/13.41MWh battery energy storage project in Thuringia, central Germany.

It will balance out fluctuations in the power grid, improve the integration of renewable energies and increasing the efficiency of the energy system, the company said, citing a target commercial operation date (COD) in Q1 2024.

The project will be owned and operated by W Power GmbH, which shares a parent company Wirth with Wirsol, and Profine Energy GmbH, a separate firm which provides renewable energy solutions.

The system will be connected to a substation operated by Thüringer Energienetze GmbH via a 20kV medium-voltage line.

It will provide a ‘wide range of services’, the announcement said, but primarily ancillary services, primary control reserve (FCR) and secondary control reserve (aFRR). It will also participate in energy trading via the intra-day and day-ahead markets.

Second life energy storage firm Voltfang raises €5.2 million

Voltfang, an Aachen-based company which designs and deploys energy storage systems with used EV batteries, has raised €5.2 million (US$5.7 million) from investors.

The money was raised in through a €4.7 million seed round earlier this year which was then followed by a €500,000 extension, raised from mostly individual investors: Max Viessmann, Bernd Heinrichs, Stefan Fritz, Michael Lowak, Ference Brose and then VC firm Dastore.

A spokesperson for Voltfang, a RWTH Aachen University spin-off, told Energy-Storage.news that the company repurposes used EV batteries at the module rather than pack level.

“This enables us to test each and every module rather than implementing a whole rack and hoping that each module lives up to expectations. So our testing is way more precise than most second life competition. Our slide in units make it possible to implement any module there is. It’s not only a plug and play solution for the customer,” they said.

However, many second life firms Energy-Storage.news has interviewed also work at the module level. Germany is a particular hotspot for second life energy storage activity, partially thanks to its large automotive sector.

The spokesperson also claimed that Voltfang has procurement contracts with big European OEMs to guarantee the shipment of 1GWh to the end of 2026, and that it is working directly with them in order to put the effects of the repurposed batteries into their ESG goals.

Expanding on how the company is setting itself apart, they said: “Thirdly, our Voltfang Industrial is a serial production. We don’t only sell the storage unit, we sell a power storage solution including inverter and installment. With our partner network, we can make sure that every client of us gets proper consulting before buying the system. This includes a detailed electricity and use case analysis.”

“Fourthly, we have a warranty of 10 years or 10,000 charging cycles. Because we re-qualify every battery by intense testing, we can promise that our clients get only the best batteries there are. Automotive Battery Standards are already the best and safest batteries you can get, so with our testing and monitoring, we make them even safer.”

“Fifthly, batteries are monitored 24/7 by our BMS and our EMS can enable all kind of stakeholders. From CHP plants to charging stations and of course photovoltaic systems. Furthermore, this month is our first implementation of a DC/DC system at Schaltbau GmbH in Bavaria, Germany.”

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Suntech, Powin and Rept Battero sign up for Vena Energy’s Indonesia clean energy ‘hybrid megaproject’

The three other counterparties to the agreement are Chinese solar technology company Suntech, US-headquartered battery energy storage system (BESS) system integrator and manufacturer Powin Energy and battery cell maker Rept Battero, another Chinese company.  

The agreement covers the exploration of opportunities to create local production lines for solar PV module and BESS components. Production lines would support what Vena Energy described as its hybrid megaproject, in development on Indonesia’s Riau Islands province.

In addition to the signing of the agreement with the three manufacturers and tech providers, Vena Energy also signed a collaboration agreement with Shell Eastern Trading, the Singapore-based subsidiary of Shell, for power from the Riau Islands facility to be supplied cross-border to Singapore.

Vena Energy, also headquartered in Singapore, has been in the Indonesia market since 2015, developing five onshore wind and solar PV plants with a combined capacity of 114MW since then.

Vena Energy’s 100MW/150MWh Wandoan South BESS in Queensland, Australia. Image: Vena Energy.

“With this Framework Agreement, we aim to significantly contribute to the development of a productive domestic supply chain in the renewable energy sector, which will support Indonesia’s energy transition plan and enhance the local economy by creating jobs, fostering industrial expansion and opening export opportunities in this growing sector of the economy,” Vena Energy CEO Nitin Apte said.

Partners target Indonesia value chain, Singapore decarbonisation

Indonesia is targeting carbon neutrality across its economy by 2060, and for greenhouse gas (GHG) emissions to peak by 2030. However, the country’s dependence on coal for power generation has grown significantly in the past decade, with various sources putting coal at around 60% of Indonesia’s generation mix as of 2021.

The Asian Development Bank (ADB) recently identified helping the Southeast Asian country’s transition away from coal as one of the key priorities for a US$35 million clean energy financing initiative, the GEAPP Energy Access and Transition Trust Fund (GEATTF). The fund was launched in April by the ADB and non-profit Global Energy Alliance for People and Planet (GEAPP).

From a deployment perspective, battery storage has not yet taken off in Indonesia beyond a handful of projects including a 5MW pilot announced by the government in March 2022.

In November last year, state-owned power distribution and monopoly electricity supplier PT Perusahaan Listrik Negara (PLN) signed a Memorandum of Understanding (MoU) with Saudi Arabian developer ACWA Power to investigate possible projects using technology including pumped hydro energy storage (PHES), large-scale battery storage, and green hydrogen or ammonia production.

In the upstream space, another state-owned company, PT Industri Baterai Indonesia, or Indonesia Battery Corporation, is currently exploring opportunities to establish battery cell manufacturing and energy storage integration facilities in the country with engineering specialist Citaglobal.

Meanwhile, cross-border transmission of energy has been a hot topic across Southeast Asia. Many attendees at the recent Energy Storage Summit Asia 2023 event mentioned proposals for an ASEAN power grid.

For countries like Singapore which have high energy demand but little land to accommodate renewable energy generation, getting energy across borders from places like Malaysia or Indonesia which have ample land and solar resource, could be vital in decarbonisation and modernising the grid.

However plans for one such project were dropped recently by its developer Sembcorp. The Singapore-based infrastructure developer in March announced the termination of a joint development agreement (JDA) for a project in Indonesia’s Batam, Bintan and Karimum region that would have hosted up to 1GW of solar PV with battery storage, for transmission to Singapore.

“By collaborating on this transformative hybrid project, we are not only supporting the economy of Indonesia by creating jobs through localised manufacturing, but we are also accelerating Singapore’s journey towards its ambitious sustainability and climate goals,” Powin Energy president Anthony Carroll said.  

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Belectric Floating Solar System Deploys Tigo Energy Technology

Gal Bauer

Belectric Israel Ltd., a solar engineering, installation and service provider in Israel, has deployed technology by Tigo Energy Inc. on one of the largest floating photovoltaic (FPV) systems in the region. California-based Tigo is a provider of intelligent solar and energy storage solutions.

Designed, purchased and constructed by Belectric, the 19.3 MW FPV was outfitted with Tigo Energy TS4-A-2F MLPE devices for rapid shutdown, as well as Tigo RSS Transmitters with Pure Signal for large and complex commercial and industrial solar systems. Producing enough energy to power approximately 3,300 houses, the system is constructed over an active fish farm.

“The components were relatively simple to integrate into our design and plans for execution, and the quality of the service gave us the confidence we needed to ensure that our operations and maintenance teams can do their work safely,” says Anna Velikansky, CEO at Belectric Israel Ltd.

Built on patented advanced rapid shutdown technology, Tigo RSS Transmitters with Pure Signal technology pair with an industry-leading list of third-party solar inverters, deliver a new level of design and installation flexibility for solar installers and EPCs and enable significant reductions in the balance of system and labor costs.

“The continued growth of solar energy in Israel and globally requires comprehensive and flexible systems that installers can deploy with confidence and ease, even when those systems float on top of agricultural reservoirs,” says Gal Bauer, senior director of validation and general manager at Tigo Energy in Israel.

“The success of this FPV system demonstrates once again what is possible for solar,” she adds, “and we look forward to continuing to support Belectric as a leader in the commercial and utility solar space.”

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Leading Light Wind NJ offshore wind proposal includes 253MW BESS option

The solicitation is seeking to procure 1.2-4GW of capacity as part of the state’s aim to deploy 11GW of offshore wind by 2040. The previous solicitation procured 3.75GW.

Leading Light Wind is proposing to build up to 2.4GW of wind capacity in its proposal, which also includes an option to provide 253MW of battery storage capacity which it said would “facilitate grid and ratepayer benefits” and advance the state’s 2GW energy storage target.

The two other bids that the New Jersey Board of Public Utilities (BPU) has received did not include any details of an energy storage facility, from Community Offshore Wind and Atlantic Shores Offshore Wind. Community is a JV between Germany-based energy firm RWE and the international arm of UK transmission system operator National Grid, while Atlantic is a JV between energy major Shell and France-headquartered energy firm EDF.

In its guidance document for the Solication, the BPU spelt out in detail how applicants can include energy storage in their proposal, giving an idea of what the regulator might be expecting from energy storage units included in the projects.

Alongside the basic specs of the project and maximum discharge and charge rates, the document says that applicants must show:”…how storage will be deployed, e.g., maximize energy revenues, reduce peak demand for electricity, or improve reliable operation of the system,” and a “description of how storage will contribute to maximizing revenues to be returned to customers”.

Applicants also need to provide ‘Average Annual Cycle Efficiency %’ for all years from start of operations to 2060.

All three bids contain various commitments to investing in local manufacturing and ensuring economic benefits from the projects are shared with local communities, including by prioritising local union construction labour.

Bryan Schueler, Senior Executive Vice President, and Construction Business Leader for Invenergy, said: “With strong partners in New Jersey, we are committed to delivering the benefits of the clean energy economy to Garden State residents for generations to come.”

Invenergy has also indicated that Leading Light may deploy energy storage as part of other large offshore wind projects it is pursuing.

Commenting on its 2.1GW bid for an offshore wind solicitation from neighbouring New York state in January, Invenergy’s VP offshore development Joshua Weinstein said: “In addition, we’re offering an energy storage solution to provide grid resilience and align our project with New York’s energy storage goals,” though didn’t give any more details.

Wind power is less commonly co-located with energy storage than in the case of solar PV for a few main reasons. One is that its output is much less predictable and much more volatile, meaning potentially heavier and less predictable cycling of the energy storage system. The larger minimum size of wind projects compared to PV also means a minimum larger energy storage size.

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Contractor hired to provide maintenance on Fluence’s 200MWh Lithuania projects

The projects, which total 200MW/200MWh, have been delivered by global system integrator Fluence for state-owned company EPSO-G and should be coming online imminently if not already – with testing having started in February for a ‘Spring 2023’ commissioning date.

The projects will ensure the instantaneous reserve of isolated working electricity for Lithuania until it is synchronised with continental European networks (KETs), Enersense said.

“We are pleased that Fluence Energy chose us as its partner, and the signed agreement is an important market opening for us in the Lithuanian electricity storage market. An energy self-sufficient Europe needs such projects, and it is great to be a part of this,” says Artūras Lapinskas, the company’s managing director for Lithuania.

The projects are set to begin operation in sequence and will provide ‘Isolated Electric Power System Operating Reserve Service’ to the grid.

Some four-fifths of the €109 million (US$120 million) of investment for the project was covered by EU‘s Recovery and Resilience Facility (RRF) for Lithuania, the bloc’s funding programme to help mitigate the negative economic effects of the Covid-19 pandemic.

Enersense already provides maintenance services on a 20MW BESS project deployed by Fluence in its home market of Finland.

Energy-Storage.news’ publisher Solar Media will host the inaugural Energy Storage Summit Central Eastern Europe on 26-27 September this year in Warsaw, Poland. This event will bring together the region’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place, as the region readies itself for storage to take off. Visit the official site for more info. 

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CATL joint venture orders Hitachi Energy BESS for grid-scale project in Japan

CHC Global’s local subsidiary, CHC Japan, has in turn started a new JV focused on developing and operating energy storage system (ESS) facilities with Shikoku Electric Power. The utility is responsible for providing electricity on Shikoku, an island just southwest of the major cities of Osaka and Kobe.

Shikoku houses four prefectures, and while the smallest of Japan’s five main islands, is still home to more than 3.5 million people. The CHC Japan-Shikoku Electric Power JV will bring the island its first-ever grid-scale battery energy storage system (BESS).

The companies announced the formation of their JV, called Matsuyama Mikan Energy in mid-June. It will install a 12MW/35.8MWh BESS in Matsuyama City, part of Shikoku’s Ehime Prefecture.

This morning (7 August), technology company Hitachi said it has been selected to provide the Matsuyama project’s BESS as well as the digital platform for its control, data acquisition, energy management system (EMS), and monitoring.

Hitachi subsidiary Hitachi Energy, which was formed after the Japanese company bought out its partner ABB’s stake in the Hitachi-ABB Power Grids business a couple of years ago, will supply its Powerstore BESS solution, and its e-Mesh digital platform.

Construction begins this month, and the BESS should enter commercial operation in the 2025 fiscal year.  

Japan’s energy storage market potential blossoming

The BESS will be sited adjacently to an existing Shikoku Electric Power large-scale solar PV plant. According to the partners, it will be used to reduce curtailment of output from solar generation in the local area, storing excess energy during off-peak hours and discharging to the grid during peaks.

It will also add flexibility to help stabilise the grid, while contributing to its decarbonisation. Japan is targeting net zero emissions from its economy by 2050, with an interim target of getting to between 36% and 38% renewable energy on the grid by 2030.

To get to that target, the Japanese government has recently re-prioritised its focus on decarbonisation of the power sector to include energy storage as well as renewable energy generation. That means promoting the use of energy storage to integrate the output of variable renewable energy (VRE) generation, from preventing curtailment when VRE supply exceeds demand, to balancing out the impact of fluctuations in generation output.

CATL, its CHC Japan partners and Shikoku Electric Power become the latest big names to spot the potential for a battery storage market in Japan: last week, Idemitsu Kosan, the country’s biggest petroleum producer, announced its first lithium-ion (Li-ion) BESS project, preceded a few days before by utility Sala Energy ordering a 69.6MWh sodium-sulfur (NAS) battery storage system.

In June, the first-ever energy trades made from grid-scale battery storage assets occurred after developer Pacifico Energy entered two 2MW/8MWh assets into the JPEX spot market. Pacifico Energy is ranked as Japan’s biggest solar developer, while another major developer in the country, Eurus Energy, is currently building its own first grid-scale BESS.

Other major Japanese corporates, many of which have become well-versed in the BESS market internationally after investing in projects abroad in the US, UK and European mainland, have also turned their attentions to the domestic market.

Conglomerate Itochu and utility Osaka Gas recently embarked on an initial 11MW project together, while carmaker Toyota and yet another utility, Tokyo Electric Power, are working on a second life BESS project at a wind farm.

In addition to making major regulatory changes, such as allowing standalone energy storage assets to participate in energy trading, the Japanese government has introduced a subsidy scheme to support energy storage projects. The Matsuyama project is among 15 in total that received subsidy agreements through a round of competitive solicitiations.

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Stem Inc grows revenue 39% in Q2, reduces EBITDA loss

Stem Inc increased its GAAP gross margin and non-GAAP gross margin by a single percentage point each to 13% an 18% respectively (year-on-year), while narrowing its EBITDA loss from US$11.5 million in Q2 2022 to US$8.5 million in the most recent.

Stem Inc deploys battery energy storage system (BESS) projects while also managing renewable energy plants with its AI-powered Athena software. It is mainly known for behind-the-meter (BTM) commercial and industrial (C&I) projects but has expanded into front-of-the-meter (FTM) too.

Assets under management (AUM) for the software platform grew to 3.8GWh of energy storage and 26GW of solar, up 9% and 2% respectively quarter-on-quarter, though the solar GW number is down 20% year-on-year (from 32.1GW).

The company said it will post positive EBITDA during 2023. For the full year, it reaffirmed its guidance of revenues of US$550-650 million, an adjusted EBITDA loss of US$5-35 million and bookings of US$1.4-1.6 billion.

Highlights included a 313MWh BESS order from energy solutions provider Ameresco, which Ameresco announced a month ago but didn’t reveal the technology provider. On the services side, Stem won a contract to optimise Hungary’s largest solar power plant, a 304MW system in Mezőcsát, covered by our sister site PV Tech.

The company is one of several energy storage firms to have listed through special purpose acquisition company (SPAC) transactions in the last few years, securing an NYSE listing in April 2021. Others to have done the same include zinc battery manufacturer Eos, iron flow battery company ESS Inc and Energy Vault, the company which is known for gravity energy storage but has since expanded to other technologies.

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Australia seeks public input on tenders for dispatchable renewables generation and storage

The consultation launched following the publication on Friday of a Public Consultation Paper by the Department of Climate Change, Energy, the Environment and Water, setting out the proposed approach and design of the scheme.

The government aims to deliver at least 6GW of clean energy generation through the scheme, driving an estimated AU$10 billion (US$6.58 billion) investment into the energy sector by 2030.

That amount was arrived at through modelling by the Australian Energy Market Operator (AEMO). However, the scheme is to be administered at state level and to be tailored to the actual needs of each location across energy networks.

This was one of the key aspects of the scheme singled out for praise even as Australia’s national and regional energy ministers met in December last year to agree the scheme’s launch in principle.

The federal government will mostly play a role of overseeing and coordinating the programme, while implementation and much of the key decision-making will happen at state level, energy economics expert Dr Bruce Mountain of the Victoria Energy Policy Centre (VEPC) told Energy-Storage.news towards the beginning of this year.

For the past few years, reform of market design in the National Electricity Market (NEM) had been “a protracted, very arcane technical debate” led by regulators, which always became deadlocked, Mountain said, due to regulators’ inclusion of coal or gas-fired generation in design proposals.

‘Essential detail is the exclusion of coal and gas’

With the change of government last year to Anthony Albanese’s Labor Party, running partly on a platform of acting on climate and clean energy, “the federal energy minister and the Energy Department took charge of this part of the process and sought agreements at a very high level with the states’ energy ministers, who under our constitution have the responsibility for electricity supply”.

As of the end of last year, that resulted in the Capacity Investment Scheme being announced as “a mechanism whose essential detail is that it will exclude coal and gas generation from compensation under the scheme,” Dr Bruce Mountain said.

Energy minister Chris Bowen confirmed the scheme would be launching this year as the national budget was announced in May.

The first stage of the scheme is expected to be rolled out this year, beginning with a tender in South Australia and Victoria, to be administered by AEMO, and a tender for the Commonwealth/New South Wales (NSW), in partnership with the NSW Electricity Infrastructure Roadmap.

According to the consultation paper, the scheme will be “progressively rolled out” between 2023 and 2027 to help Australia meet its electric system reliability needs by the end of this decade. The government will reassess the need for further tenders beyond 2027 as needed.

Publicly or privately-owned utility-scale projects that achieved financial close from 8 December 2022 onwards will be eligible.

Solicited volumes by region will be dependent on modelling of the reliability need for each, translated into tendered volumes. However, some design parameters are yet to be determined, such as minimum duration of storage technologies, how different storage technologies are compared in tender evaluation and how the Capacity Investment Scheme (CIS) tenders should evolve over time.

NSW Electricity Infrastructure Roadmap tenders are already underway – as our colleagues at PV Tech reported last week, a solicitation for generation was oversubscribed with 3.1GW of interested bids versus a 950MW target. Meanwhile, 1.6GW of long-duration energy storage (LDES) bids were received, again more than double a targeted 550MW.

Meanwhile tender arrangements for South Australia and Victoria are expected to be published by October, and further details on the national rollout will be out by the end of this year.

See the government’s Public Consultation Paper and other supporting information here.

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