German energy giant RWE is starting a battery project in southwest New South Wales, Australia, using Tesla Megapack units. Limondale’s large eight-hour battery will have a capacity of 50 MW/400 MWh.
The project will be built alongside RWE’s existing 249MW Lemondale solar farm and will be the first eight-hour battery built in Australia, according to RenewEconomy. The NSW government’s LDES tender last year was designed to attract interest from a number of pumped energy storage projects. However, these were found to be difficult as they negotiate planning approvals and are faced with a big increase in civil construction costs.
According to the information presented in the report, the Lemondale Megapack battery has been awarded what is effectively an underwritten agreement through the Long Term Energy Service Agreement allocated by the NSW government. By eliminating risk at the lower end of the market, project developers can more easily obtain attractive financing deals, lowering the cost of the battery.
“RWE’s investment decision and signing of supplier contracts for the Limondale BESS project is an exciting step forward in our commitment to the Australian renewables sector and support of New South Wales’ renewable energy ambitions,” said Katja Wünschel, the head of renewables for RWE in Europe and Australia.
“As a battery storage pioneer, RWE develops, builds and operates innovative and competitive battery storage systems in Europe and the US, and soon here in Australia. We look forward to continuing to work with all stakeholders to help realize the country’s renewable energy goals.”
Daniel Belton, the head of RWE Renewables in Australia, said Tesla would supply Megapack units and Beon Energy Solutions would balance the work. The Megapack-powered battery will be connected to the existing substation. Its construction will begin in the second half of 2024, and commissioning is planned for the end of 2025.
“RWE sees an increasing role for storage of varying durations to support Australia’s energy transition,” he said, noting that the company intends to develop up to 3 GW of renewable energy capacity in Australia by 2030.
