An essential part in Australia’s energy transition to a low-emissions economy, Battery Energy Storage Systems (BESS) are increasingly playing a vital role in the country’s journey to a lower-carbon future. To help decarbonise the Australian energy sector through firming and grid stability, Shell Energy is investing in grid-scale BESS projects in key locations to support the transition. And with on-site battery storage systems, we’re also helping businesses improve energy productivity and unlock potential revenue from a range of market schemes.
Battery Energy Storage Systems (BESS) come in various sizes and shapes, ranging from smaller on-site batteries that respond to peak demand, increase grid resilience, and provide backup power when necessary to larger grid-scale systems that combine renewable energy generation with large batteries. The smaller on-site batteries access a variety of revenue streams, while the larger grid-scale batteries store energy generated during low-demand periods and discharge it during peak times.
Grid-scale batteries, which are also known as ‘grid-forming’ batteries, are equipped with inverters that convert electricity from the direct current (DC) that the batteries produce to the alternating current (AC) delivered to commercial and residential customers. As of January 2023, Shell Energy is investing in three large grid-forming batteries to help Australia decarbonise faster and transition to a lower-carbon future.
On-site battery energy storage systems, or ‘behind-the-meter BESS’, could be the solution that empowers your business to improve its on-site energy productivity and unlock potential revenue from market schemes and meet its Environmental, Social and Governance (ESG) commitments. Through battery design, installation and energy asset structuring, Shell Energy can help your business optimise and maximise the value that your on-site battery delivers.
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One of the key benefits of a BESS for business is the superior flexibility it delivers compared to conventional energy sources. By enabling a balance of energy production and consumption between day and night, battery energy storage can support sustainability goals by storing the renewable solar energy generated on site.
In addition, BESS offers great flexibility, unlike other forms of energy storage and generation. Batteries’ response time is fast. They respond to peak demand, build grid resilience, and provide backup power when you need it. They can also be used to enable access to Wholesale Demand Response (WDR), Frequency Control Ancillary Services (FCAS) and the Reliability and Energy Reserve Trader (RERT) revenue streams.
With an increased shift to renewable electricity generation, here in Australia and globally, there’s increasing demand for short and long-duration storage systems that will provide a solution for intermittency (an issue associated with the fluctuating nature of sun and wind generated electricity) and deliver greater stability and security across the grid.
By providing vital grid stability services , battery technology is accelerating the uptake of renewable generation and playing an essential role in the decarbonisation of the energy sector. ARENA recently backed eight grid-scale batteries with a 2.0 GW / 4.2 GWh capacity worth a total of $2.7 billion across the National Electricity Market (NEM) which, once built, will increase the grid-forming battery storage capacity across the grid tenfold.1,2
“Battery energy storage has a vital role to play in the energy transition by supporting renewable generation and contributing to improved reliability for the grid and consumers”
Shell Energy CEO, Greg Joiner
To help Australian sectors, businesses and industrial users decarbonise faster and meet their ambitions for a lower-carbon future, Shell Energy is working with companies such as Edify, AMPYR Energy Australia and Greenspot on an exciting range of BESS projects.
Located in Riverina, Murrumbidgee Shire, South West NSW, the Riverina Energy Storage System is one of three independent but co-located projects that includes the ‘Riverina Energy Storage System 1 and 2′ and ‘Darlington Point Energy Storage System’. Shell Energy selected Edify as its BESS partner on the 60MW/120MWh Riverina Energy Storage System 1, which includes a long-term services agreement to access operations rights to the battery once commissioned.
In partnership with AMPYR Australia, a developer and operator of renewable energy assets, Shell Energy is jointly developing a 500MW/1000MWh battery that will connect to the adjacent TransGrid Wellington substation in Central West NSW. Once complete, and subject to securing the relevant approvals, authorisations and financing, the Wellington Battery Energy Storage System (BESS) will be one of the state’s largest energy storage projects.
Partnering with Greenspot, a privately owned group specialising in the acquisition and repurposing of property assets that’s obtained development approval for the project, Shell Energy has development rights for the 500MW/1000MWh utility-scale battery storage project. Once built, the Wallerawang 9 battery will connect to the adjacent 330kV Wallerawang Substation located near Lithgow in Central West NSW, a region that’s long played a vital role in meeting Australia’s growing energy needs.
Shell Energy is partnering with Macquarie Asset Management’s Green Investment Group (GIG) to deliver a utility-scale battery energy storage system in Cranbourne, Victoria. The Rangebank BESS, which will be built, serviced, and maintained by Fluence, is expected to be completed in late 2024 and will enhance Victoria’s capacity for hosting renewable energy. It will also provide crucial system services to help with the safe, secure and dependable operation of the power grid.
“The Rangebank project is our first grid-scale battery investment in Victoria and marks Shell’s first direct equity investment in a utility-scale BESS globally,”
Shell Energy is committed to providing cutting-edge BESS solutions that aid in establishing a more sustainable and resilient power system in Australia. If you’re looking to decarbonise your business and achieve emissions reduction goals, we offer a range of products and services that can help. Please fill out the form, and one of our Energy Solutions experts will be in touch to discuss how we can assist you further.
Or, you can call us on 13 23 76 during Australian business hours or email [email protected].
References: 1 ARENA backs 8 grid-scale batteries worth $2.7 billion 2 ARENA backs eight big batteries to bolster grid 3 Shell’s-500mw-1000mwh-battery-storage-project-at-former-coal-power-station-in-nsw/ 4 Shell’s-energy-bess-australia/
To view the Shell Cautionary Note, visit: https://www.shell.com/investors/disclaimer-and-cautionary-note.html
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5 April 2023
Shell Energy announced its first grid-scale battery project in Victoria and fourth in Australia. Located in the suburb of Cranbourne West, the Rangebank Battery Energy Storage System (BESS) will provide 200MW/400MWh of battery storage capacity including grid support.
22 November 2024
Meet Greg Fyffe, Team Leader Storage and Infrastructure at Shell Energy, as he shares expert insight into why batteries are so important to the energy transition and what makes our BESS model so unique.
13 November 2024
Learn more about Shell Energy’s milestones in 2024 as we continue on our path to support Australia’s energy transition.
