New Zealand's state-owned power utility Meridian Energy has announced that the construction of the Ruakākā Battery Energy Storage System (BESS) will begin in the first quarter of 2023. The project will set up the country's first large-scale grid battery storage system, providing Meridian with a versatile North Island asset, situated south of Whangārei city.
The 100 MW peak and 200 MWh (2 hours) energy storage system, to be made at the cost of $ 186 million, is to be commissioned by Saft. The project is expected to become operational by second-half of 2024.
Meridian Energy Chief Executive Neal Barclay said that the company's approach to a battery storage system has evolved during its development phase.
"A North Island battery was originally part of our response package to Rio Tinto's termination of its electricity contract for the Tiwai Point Aluminium Smelter. As we developed the opportunity, the BESS business case proved to be an economic investment irrespective of Rio Tinto's future in New Zealand."
Barclay claimed that the BESS offers multiple new revenue streams, providing the ability to load shift between price periods and to participate in the North Island reserve electricity market. "As intermittent renewable generation increases in this country, the Ruakākā Battery Energy Storage System will help manage supply fluctuations through a low carbon footprint, reducing this country's reliance on fossil fuels".
"We have a bold vision for Ruakākā, with a grid-scale solar farm planned to further speed up our transition to a productive low carbon economy. The shared infrastructure provided by the BESS will significantly improve the economics of the future solar farm," added Barclay.
Ruakākā BESS is to be joined at the site by a 130MW solar PV plant in the coming years. Meridian noted that the projects will ensure grid integration and reduced cost of power management.