Transgrid will go to the market to seek contracts with battery operators to ensure the reliability of energy supply in two growth regions in NSW.
Grid-scale batteries have been identified as one of the preferred options for maintaining a consistent supply in the Bathurst, Orange, and Parkes, as well as the NSW North West Slopes region.
“This marks a doubly significant milestone because when they were compared to other options grid-scale batteries came out on top in both regions in terms of providing the biggest benefits,” Transgrid Executive General Manager of Network Marie Jordan said.
“Our grid is changing, which is why we’re going beyond the traditional poles and wires approach and embracing new technologies and business models to meet the needs of consumers and keep the system reliable,” she added.
Transgrid has launched a competitive procurement procedure to purchase services from these new battery projects before finalising contracts with the successful proponent(s) in both regions.
Transgrid will hold a Market Forum on 10 August, encouraging potential service providers to register.
“We’re looking to purchase services from providers who own and operate battery storage. This approach helps meet growing demand in both regions faster than upgrading the existing network,” Jordan said.
“These services will help us unlock extra capacity on the transmission network and use the existing network better and avoid interruptions to supply for consumers. The service providers can also use the batteries to trade in the energy market when not needed to support Transgrid’s network, so it’s a win-win for the power system,” she stated.
Transgrid forecasts show electricity demand in the Bathurst, Orange, and Parkes region will rise significantly.
This is primarily due to the anticipated connection of new industrial loads and general load growth around Parkes, including from the NSW Government‘s Parkes Special Activation Precinct.
Transgrid is looking for services for two separate Battery Energy Storage Systems (BESS) to be deployed at substations in (or near) Panorama and Parkes (perhaps in conjunction with other supporting technologies). They will provide dynamic reactive support to regulate voltage changes on Transgrid’s network during peak demand periods beginning in 2025 or shortly afterwards.
Transgrid’s Regulatory Investment Test for Transmission (RIT-T) determined that two bids for a grid-scale BESS from distinct third parties were the equal best alternative, yielding $2,550 million and $2,544 million in net benefits, respectively. These possibilities outperformed the network-only (‘poles and wires’) solutions evaluated during the process, deferring or eliminating the need for costly network improvements.
Additionally, Transgrid forecasts indicate power demand in the North West Slopes is likely to rise significantly in the coming years due to the planned connection of several substantial industrial loads and general load growth in Narrabri and Gunnedah.
Transgrid is looking for services from a BESS to be installed in the Narrabri or Gunnedah region (potentially in conjunction with other supporting technologies), which will provide both active and reactive support to manage thermal and voltage constraints on Transgrid’s network during peak demand periods beginning in 2025 or shortly thereafter. Transgrid will be able to ensure secure and dependable supplies to consumers in the region, even in the event of a fault or outage.
Transgrid’s RIT-T found that two proposals for a grid-scale BESS from distinct third parties were regarded as the equal best alternative, yielding $459 million and $441 million in net benefits, respectively. These options outperformed the network-only solutions evaluated, deferring or avoiding the need for large network upgrades in the area.
