Transgrid will go to the market to seek contracts with battery operators to help maintain the reliability of electricity supply in two growth regions in NSW.
20 July 2023
Executive General Manager of Network Marie Jordan says it followed a thorough assessment of options.
“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.
“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 said.
Transgrid is now entering a competitive procurement process to buy services from these new battery projects, before finalising contracts with the successful proponent(s) in both regions.
Transgrid will conduct a Market Forum on August 10 and is inviting 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.
“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 said.
Bathurst, Orange, Parkes region
Transgrid forecasts indicate electricity demand in the Bathurst, Orange and Parkes region is expected to increase substantially.
This is mainly due to the planned connection of new industrial loads, along with general load growth around Parkes, including from the NSW Government’s Parkes Special Activation Precinct.
Transgrid is seeking services from two separate Battery Energy Storage Systems (BESS) to be installed at substations at (or near) Panorama and Parkes (potentially paired with other supporting technologies). They will provide dynamic reactive support to manage voltage variations on Transgrid’s network during high demand periods, from 2025 or soon thereafter.
Transgrid’s Regulatory Investment Test for Transmission (RIT-T) found two proposals from separate third parties for a grid-scale BESS were ranked the equal best option, delivering $2,550 million and $2,544 million in net benefits respectively. These options outperformed the network-only (‘poles and wires’) solutions that were also assessed during the process and will defer or avoid the need for significant network upgrades.
Read more about the Bathurst, Orange and Parkes Supply project here.
NSW North West Slopes region
Transgrid forecasts indicate electricity demand in the North West Slopes is also expected to increase substantially going forward.
This is due to a number of significant industrial loads anticipated to connect as well as general load growth in Narrabri and Gunnedah.
Transgrid is seeking services from a BESS to be installed in the Narrabri or Gunnedah region (potentially paired with other supporting technologies), which will provide both active power and reactive support to manage thermal and voltage constraints on Transgrid’s network during peak demand periods, from 2025 or soon thereafter. This will enable Transgrid to maintain secure and reliable supplies to customers in the region, even in the event of a fault or outage.
Transgrid’s RIT-T found two proposals from separate third parties for a grid-scale BESS were ranked the equal best option, delivering $459 million and $441 million in net benefits respectively. Once again, these options outperformed the network-only solutions that were also assessed and will defer or avoid the need for major network upgrades in the area.
Read more about the North West Slopes Area Supply project here.
Register your interest
Transgrid will launch the competitive process to procure services from BESS facilities in each of these regions in August 2023.
We will hold an online Market Forum to brief potential suppliers on August 10 at 10am (Australian Eastern Standard Time). We invite all interested parties to attend to hear more about these opportunities.
For participation in the Market Forum, please sign up by completing the online form available here.
We intend to release the full Request for Tender (RFT) package to registered participants later in August, with responses due back after around eight weeks.
Parties wishing to participate in the competitive process and access the RFT will need to separately register. Please contact us at BOP_NWS@transgrid.com.au for further details and information and eligibility requirements.
Mark Nolan 0429 047 136