South Australia initiates consultation on latest long-duration energy storage tender

As a state with a large number of renewable energy power generation facilities, South Australia is one of the leading regions in Australia's energy transition. Solar photovoltaic has always been one of the biggest drivers of the state's renewable energy development, whether in the form of distributed (such as on rooftops) or utility-scale photovoltaic. However, despite the growth in solar photovoltaic power generation, the retirement and exit of gas-fired and coal-fired power generation pose challenges to maintaining grid stability and resilience. This may make energy storage systems play a crucial role in the state's energy transition.

 

Currently, the state is preparing to launch a new long-duration energy storage (LDES) tender, seeking projects with an output power of at least 30MW and an energy storage duration of at least 8 hours.

 

The state government is advancing the formulation and implementation of its Stable Energy Reliability Mechanism. The second phase of consultations was initiated earlier this week.

 

The Stable Energy Reliability Mechanism will provide underwriting support when needed, which will be offered as an "addition" to income when necessary, to ensure that LDES providers remain in the market during the relevant commitment period. The contracted LDES capacity providers must be available for dispatch throughout the year and their performance must be evaluated.

 

This support is intended to enable these assets to recover their operational efficiency costs and achieve economic returns commensurate with operational risks.