Neoen has revealed that its Hornsdale Power Reserve (HPR) has exceeded all performance and market expectations after just one year in operation, according to a new independent report. For more information see the IDTechEx report on Batteries for Residential, Commercial, Industrial and Utility Applications 2016-2026.
Located near Jamestown, South Australia, HPR, the world's largest lithium-ion battery energy storage system is owned and operated by Neoen, with the support of the supplier Tesla. The initiative of this 100 MW lithium-ion battery energy storage was driven by the South Australian Government to stabilise the electricity grid, facilitate integration of renewable energy in the state and avoid load-shedding (i.e. blackout) events.
The fully operational site has a discharge capacity of 100 MW and energy storage capacity of 129 MWh. and shares the same 275 kV network connection point as the 317 MW Hornsdale windfarm.
A report by global engineering and infrastructure advisory company Aurecon has outlined the HPR's achievements in meeting these key objectives. It also recognises the HPR as a core element of South Australia's pioneering renewable energy initiative, paving the way for new battery projects across the country.
Aurecon's energy leader, Paul Gleeson, said: "reviewing the data from Hornsdale Power Reserve's first year of operation has given us real insights into the capabilities of this new technology, including how these fast response systems can help improve stability, reduce the likelihood of load-shedding events, and contribute to the reduction in wholesale prices. The data is telling us that these fast response systems can help us optimise the way Australian's energy system works".
The key findings from the report are that the Hornsdale Power Reserve:
- Has contributed to the removal of the requirement for a 35 MW local Frequency Control Ancillary Service (FCAS), saving nearly $40 million per year in typical annual costs
- Has reduced the South Australian regulation FCAS price by 75% while also providing these services for other regions
- Provides a premium contingency service with response time of less than 100 milliseconds
- Helps protect South Australia from being separated from the National Electricity Market
- Is key to the Australian Energy Market Operator's (AEMO) and ElectraNet's System Integrity Protection Scheme (SIPS) which protects the SA-VIC Heywood Interconnector from overload
The HPR has responded thousands of times to frequency outside the normal operating band. Around one hundred of those events were serious, such as the trip of a large coal plant and one critical event in which two transmission lines were lost. South Australia, although cut off from the grid, didn't lose power as HPR provided frequency support to steady the grid.
Franck Woitiez, Managing Director Neoen Australia, added: "the success of Neoen's Hornsdale Power Reserve has strengthened the commercial case for new battery projects in Australia. It enables their deployment to support the ongoing energy transition and will continue to prove the value of similar investments. Hornsdale Power Reserve is an example of the projects that will underpin a modern energy system in Australia and Neoen is excited to continue leading this sector."
Gleeson concluded: "This is definitely an exciting project as a world first, but what is really exciting is the impact the technology can have on the whole National Electricity Market as our generation fleet continues its transition".
Top image: Hornsdale Power Reserve
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