Shell Energy has acquired the development rights for a Battery Energy Storage System (BESS) project, located within the Greenspot Wallerawang precinct, being the site of the former Wallerawang Power Station and surrounding lands, near Lithgow in the Central West of New South Wales (NSW).
Pending a Final Investment Decision, the 500MW/1000MWh battery will be located within the Wallerawang Power Station site, where two 500MW coal-fired generating units were decommissioned in 2014. The BESS will be known as ‘Wallerawang 9’, acknowledging decades of operation of units 1-8 within the site, and honouring the role Lithgow has played in meeting the nation’s energy needs.
Batteries store energy when it is plentiful (typically during periods of high renewable generation such as in the daytime when solar generation is peaking) and distribute it back to the grid when demand is high. The ability to back up the electricity grid is called firming generation. Batteries can also discharge very small amounts of energy almost instantaneously to keep the frequency of the grid stable much faster than traditional sources of generation which can take between five minutes and hours to start up – this is called frequency control ancillary services (FCAS). FCAS will become increasingly important as we integrate more renewable sources of energy into the grid as generation can fluctuate depending on factors including the weather.
The Wallerawang 9 BESS project will be developed in two stages pending all the necessary local, State and Federal Government approvals being obtained. In parallel, grid connection activities are being progressed to secure the approvals required to connect into the NSW electricity network.
The Wallerawang 9 BESS will form an important part of Shell Energy’s growing portfolio of assets helping support renewable generation in Australia and creating a more resilient energy system.
The construction of the Wallerawang 9 BESS project will contribute to the Lithgow economy and to the economy of the NSW Central-West more broadly. The project will take up to 20 months to construct and commission, with the construction workforce expected to peak at 100 people. The project will generate direct and indirect benefits to the local community, including:
• up to 100 construction jobs during the peak construction period, and up to five operational jobs. • expenditure on accommodation and businesses in the local economy including the procurement of goods and services by Shell Energy and associated contractors.
Shell Energy have demonstrated that the Lithgow Local Government Area (LGA) holds sufficient accommodation to house the construction workers not already residing in the LGA. The project is unlikely to result in increased demand on community services and infrastructure such as roads. Shell Energy would be required to repair any damage to local roads resulting from the construction of the project.
The project site is located within the broader, 620 hectare Greenspot landholding comprising the decommissioned Wallerawang Power Station and surrounding lands. The project is in an area historically used for electricity generation and is a compatible land use in this location.
The Wallerawang 9 project will provide flow-on benefits to the local community. A Voluntary Planning Agreement is proposed under which some of these benefits would be delivered.
The main objectives of the Planning Agreement are to:
The Wallerawang 9 BESS (Battery Energy Storage System) is a utility scale BESS to be located in Wallerawang near Lithgow, NSW, Australia, pending final investment decision. Once constructed and commissioned, it will provide up to 500MW capacity of flexible and reliable energy services. Wallerawang 9 BESS, named to acknowledge and honour the eight previously operated generator units at the Wallerawang Power Station, will be connected to the electricity grid through the adjacent Wallerawang 330kV substation, which is operated by TransGrid.
The Wallerawang 9 BESS will help to stabilise New South Wales’ state electricity supply by providing additional storage capacity and enabling discharge of supply at times of peak demand. Batteries have a vital role to play in the energy transition, addressing the intermittency of renewables and providing important system stability. Wallerawang Substation is a major sub-station in NSW’s electricity network and provides an ideal point for a BESS to connect to the grid.
The Wallerawang 9 BESS is to be constructed within an area of approximately 20 hectares which forms part of the broader 620 hectare Greenspot landholding. Care has been taken to ensure the BESS is sited appropriately within the local context. The approved development application is supported by technical reports Assessment which outline appropriate design and management measures.
Subject to a Final Investment Decision, construction of the W9BESS is scheduled to begin from 2025 onwards.
Battery technology is an essential element in the decarbonisation of the energy sector, providing firming for solar and wind, and vital grid stability services. BESS are a key technology to provide firming capacity to the grid and provide a reliable source of energy as Australia reduces its reliance on centrally generated fossil fuel electricity. BESS also provide grid stability and can help to power up the grid in an event of a blackout. Once stages 1 and 2 are completed, the Wallerawang 9 BESS can provide up to 500 MW of dispatchable power over two hours.
A BESS is typically designed to last 20 years, which can be extended with maintenance and replacement of some components of the facility.
The BESS solution is based on lithium-ion battery energy storage technology.
Please refer to the ‘Planning’ page for an overview of construction and operational noise from the development.
The Wallerawang 9 BESS will be constructed within the land holding of the broader Greenspot landholding where a multipurpose precinct is proposed. Careful consideration has been given to its siting within the the local context. The site may include the construction of boundary noise attenuation walls and vegetation buffers around the BESS site which will help to mitigate visual impacts and ensure appropriate integration with the site surroundings.
Shell Energy is currently working through a modification to the existing development approval for the Wallerawang 9 BESS as well as on the necessary grid connection approval process for the BESS. All necessary approvals are expected to be attained in the second half of 2024 and into 1st half of 2025. The project is subject to a Final Investment Decision by Shell Energy.
Please contact Greenspot here.
