AGL breaks ground for 250 MW/250MWh Torrens Island battery project

Australia's leading power retail and generation company, AGL Energy Ltd on Monday announced that it has broken the ground at Torrens Island for the construction of 250MW/250MWh battery energy storage system (BESS) project -- AGL's first-ever grid-scale battery project and the second biggest in Australia.

The agreement for the supply of BESS by Wartsila forAGL's $180 million grid-scale battery project was first reported in August.

The Torrens Island battery project, AGL noted, will be the first of AGL's national roll-out of 850 MW of grid-scale batteries, and also the first step in the future Torrens Island Energy Hub, which will support renewable energy generation in South Australia.

Low-emission firming technologies will play a leading role in driving Australia's energy transition, said Markus Brokhof, Chief Operating Officer, AGL.

"We're delighted to have the opportunity to commence our battery program in South Australia. Today's milestone is an important step in bringing to life our vision for the low-carbon industrial energy hubs required for Australia's energy future," he added.

Currently, South Australia generates more power from renewable sources than any other state, and the AGL's battery storage project is expected to further reinforce a reliable energy supply for households and businesses.

The Torrens Island system is planned to become operational by 2023 and will be delivered by Wärtsilä on full engineering, procurement, and construction (EPC) basis, and designed to provide grid-support capabilities to AGL's asset portfolio.

The battery will enable AGL to adapt to changing market conditions, with an initial one-hour duration that is capable of expanding to up to four-hours duration in the future.

"It's great to see AGL investing in new storage assets to add further stability to our electricity grid," said Dan van Holst Pellekaan, South Australia's Deputy Premier and Mining and Energy Minister.

"AGL's investment was yet another step on South Australia's journey towards of net-100% renewable energy generation by 2030 and the thousands of jobs that transition will generate."