New South Wales raises long-duration energy storage target to 28 GWh

New South Wales (NSW) had already established a target of achieving 16 GWh of long-duration energy storage (LDES) capacity by 2030 and has now announced plans for an additional 12 GWh by 2034.

NSW Energy Minister Penny Sharpe said the announcement will improve the bankability of long-duration storage and provide investors with a clear investment signal, supporting their confidence and the energy transition.

“This is a clear signal for investors that NSW is committed to supporting more long-duration storage and we’re in it for the long haul,” said Sharpe.

With three of the state’s four coal-fired power stations expected to retire by 2034, Sharpe said long-duration storage will be a cornerstone of the successful transition to a renewable energy system.

Long-duration storage projects, including pumped hydro, batteries, compressed air storage, and other technology, will enable renewable energy such as solar and wind power to be stored and then released on demand when needed.

“Long-duration energy storage stores excess cheap renewable energy and provides it back to the market during high-demand periods,” said Sharpe. “It’s great news for our energy future.”

In addition to the 28 GWh of LDES by 2024 objective, the state government has also announced it will retain the eight-hour duration requirement of LDES within the Energy Infrastructure Act.

It will also require the AEMO Services part of energy regulator the Australian Energy Market Operator (AEMO), in its role as consumer trustee, to consider the full range of LDES benefits in its assessment of long-term energy service agreement bids. That includes a project’s ability to provide grid security services such as inertia and system strength, and its capacity to offset or defer network investment.

The state government’s announcement has been widely welcomed by the energy sector with Christiaan Zuur – market, investment, and grid policy director at trade body the Clean Energy Council – saying it provides the market with the requisite confidence to commit to project investment.

“This is a sensible policy that demonstrates renewable generation supported by storage is the lowest-cost pathway to a reliable, sustainablec, and affordable modern electricity system,” said Zuur, adding that the outcome “is an encouraging step towards giving industry the certainty needed to back more investment in energy storage.”

From pv magazine Australia.