A 500 megawatt battery to be built on the Liddell power station site has moved a step closer to being realised as a result of funding from the Australian Renewable Energy Agency (ARENA).
The project is one of eight battery projects around Australia, which have a combined 4.2 gigawatt hours of storage capacity, that will share in $176 million of funding from the agency.
The Liddell battery, which received planning approval earlier this year, will form an integral part of the integrated industrial energy hub planned for the site.
It will incorporate advanced inverters providing grid forming capabilities that improve the overall security of the energy system in NSW.
The funding from ARENA will effectively pay for half of the battery's capacity.
"Reaching this next stage of negotiating formal terms for a funding agreement with ARENA is another exciting step towards delivering on the Liddell battery project and the development of the Hunter Energy Hub as we head toward a final investment decision on the battery," AGL chief operating officer Markus Brokhof said.
"As we move away from coal powered energy it is critical we invest and deliver on building firming capacity and demonstrate grid forming capabilities in the National Energy Market through projects like the Liddell battery."
The development of big batteries and long duration storage was prioritised earlier this month as part of an agreement between energy ministers to accelerate the switch from coal to renewables.
The initiative seeks to reward new zero emission technologies rather than prolonging the life of the legacy fossil fuel plants.
The Liddell battery forms part of the Hunter Energy Hub project.
WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.
