Enhanced support for large-scale energy storage

In response to a request from the federal government, the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA) have confirmed that they will prioritise financial support for flexible capacity and large-scale energy storage demonstration projects already in their pipelines.

Large-scale energy storage allows intermittent renewable energy, like wind and solar, to be stored and dispatched as needed. Through providing targeted support, the costs of these technologies will be brought down, energy security enhanced and local expertise developed. The objective is that these technologies become commercially deployable without any further government support.

It is expected that ARENA will initially set aside around $20 million for demonstration projects under its Advancing Renewables Programme, with CEO Ivor Frischknecht saying the organisation will call for expressions of interest for such projects. Eligible projects are those which provide flexible capacity to the system including battery storage and pumped hydro energy storage.

The CEFC will provide successful ARENA funding recipients with the opportunity to secure long-term debt finance to support their projects and is additionally open to considering finance solutions for other projects not seeking ARENA funding. CEFC finance would be provided along similar terms to its $250 million commitment to accelerate large-scale solar.

ARENA and the CEFC will also look to support related innovative technologies that boost the stability of the electricity grid — such as advanced control systems, smart grids and demand response measures. The organisations are additionally discussing flexible capacity projects with several potential proponents.

“The cost of generating energy from wind and solar has come down fast and is continuing to decline,” said CEFC CEO Oliver Yates. “If we are to maximise Australia’s strategic national competitive advantage in clean energy, we need to complement this with energy storage and grid stability services.

“Working together, ARENA and the CEFC are looking forward to helping accelerate the development of flexible capacity projects that will further strengthen our electricity grid, delivering lower emissions and lower costs.”