Neoen proposes to cooperate with Collie, Western Australia, to build a gigawatt scale battery energy storage project, which is closely and continuously connected with the coal industry.
Neoen, a French developer, owner and operator of renewable energy and energy storage assets, has delivered the largest battery energy storage system in Australia so far, namely the 300MW/450MWh Victorian Big Battery battery energy storage project in Victoria. Picture
Neoen 300MW/450MWh Victorian Big Battery Energy Storage Project
The company also built the Hornsdale Battery Energy Storage Project in South Australia with Tesla, which is considered as a landmark project of the global large-scale battery energy storage system. When Neoen reported its latest financial results in August, it said that the revenue of its energy storage department in the first half of 2022 was $39.3 million, three times that of the same period last year.
This is driven by its successful participation in the market in Australia, where the Victorian Big Battery energy storage project accounts for the main part.
In its application to the Collie County Planning Authority, the company said that its proposed energy storage project would be a 1GW/4GWh battery energy storage system, which would be constructed in phases from the initial installation of 200MW/800MWh.
Whether it can reach 1GW/4GWh depends on the service demand for battery energy storage system. 200MW/800MWh will be added at each stage, and the project will be connected to Australia's western power transmission network.
A power plant in Collie community is one of the last two coal-fired power plants in Western Australia that are still owned by the state government. The plant is scheduled to close in 2027, while another plant, Muja coal-fired power plant, will close in 2030.
The motivation for doing so is economic as well as environmental and social. The Western Australian government said in June that the cost of maintaining the operation of the plant may increase customers' annual energy bills by an average of A $1800 to A $3000, while Synergy, the state-owned power producer that operates these power plants, has an expected loss of A $3 billion.
Mark McGowan, Governor of Western Australia, and Bill Johnston, Minister of Mines, Petroleum and Energy of Western Australia, said at that time that Western Australia would invest about A $3.8 billion to promote an "orderly transition" to renewable energy power generation facilities and energy storage systems. Politicians said that the investment will mainly be used to upgrade and strengthen Australia's Southwest Interconnection System (SWIS) grid network.
A Fair Transition in Long History Coal Areas
A fund worth more than $500 million is working on the transformation of the Collie region, which has coal mines and power plants.
A source said that the location chosen by Neoen is about 4km away from Collie Power Plant and 13km away from towns, which is an ideal location for deploying battery energy storage systems in regions of great significance to Australia's energy industry for half a century
The source pointed out that the project is in line with the CollieJust transition plan formulated and funded by the Western Australian government, which will bring investment to the region and support local employment and business operation.
If the project continues, it will also work with the Collie District Council on a community benefit sharing program.
In April this year, another energy developer, ZEN Energy, began to carry out a feasibility study on another battery energy storage project in the region. It is estimated that the installed capacity of the project is 200MW, and the energy storage capacity is 600MWh~800MWh. The project is funded by the Western Australian government.
The project will provide renewable energy to commercial and industrial (C&I) entities to help them reduce their impact on the wholesale market. It will also be a key part of the Collie battery energy storage system and hydrogen energy industry center project that the state government hopes to build
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