Question On Notice No. 6361 asked in the Legislative Assembly on 12 August 2020 by Mr D.T. Redman
Question Directed to the: Minister for Energy
Parliament: 40 Session: 1
Question
I refer to various contracts let for the construction and delivery of standalone power systems (SPS) and community batteries under the Minister's portfolio responsibilities, and ask:
(a) Can the Minister list the various battery technologies used in the
deployment of SPS and community batteries in any government contracts
under his portfolio, including:
(i) How many of each technology used;
(ii) Where they have been deployed; and
(iii) What companies had/have the contract for their delivery;
(b) What is the government's policy on utilising the various battery technologies that exist in the market;
(c) Is it the intent of the McGowan Government to ensure there is an active
effort to ensure a variety of battery chemistries are deployed in government contracts for services:
(i) If yes, what is the strategy/policy; and
(ii) If no, why not; and
(d) Is the government aware that some battery technologies could in the
future provide a strong value chain of locally supported jobs and mining
interests more so than some other technologies:
(i) If so, what is the strategy to ensure this full supply chain assessment
is valued in any government decision to support a particular battery
chemistry?
Answered on 15 September 2020
(a)
(i) The battery technology used in the deployment of SPS and community batteries listed in (ii) and (iii) is Lithium-Ion.
(ii) Standalone power systems (SPS)
A total of 42 SPS have been deployed by Western Power to date, in the following locations:
2 x Elachbutting
2 x Lake Muir
4 x Bodallin
- Shire of Mullewa / City of Greater Geraldton
2 x Tardun
1 x Pindar
4 x Mullewa
2 x Newdegate/ Dunn Rock
- Shire of Broomehill-Tambellup
19 x Tambellup
2 x Gairdner
1 x Moodiarrup
1 x Mokup
1 x Kendenup
1 x Gnowangerup
A total of 25 SPS have been deployed by Horizon Power to date, in the following locations:
- Goldfields-Esperance Region
2 x Mount Ney
1 x Neridup
3 x Beaumont
11 x Condinup
2 x Scaddan
2 x Cape Le Grande
1 x Esperance (Depot)
1 x Cape Le Grand National Park
1 x Fitzgerald National Park
1 x Exmouth
Community batteries
The first community battery in Australia was launched by Synergy in April 2016 at Alkimos Beach. Western Power subsequently installed community batteries at Meadow Springs, Falcon and Ellenbrook. More recently, Western Power has installed additional batteries at:
- Ashby, Wanneroo – in operation
- Two Rocks, Wanneroo – in operation
- Canning Vale, Gosnells – in operation
- Vasse, Busselton – in operation
- Kalgoorlie, Kal-Boulder – in operation
- Ellenbrook (Westgrove), Swan – in operation
- Port Kennedy Rockingham – in operation
- Yokine, Stirling – in operation
- Parmelia Kwinana – in operation
All of these batteries are installed and connected, bringing about network benefits, and will operate as community batteries, also enabling the provision of a residential product.
Western Power also has a large-scale community battery in Perenjori (providing reliability services) and a behind-the-meter battery in Margaret River.
(iii)
The following companies had the contract for Western Power’s SPS construction and delivery:
- Hybrid Systems
- BayWA r.e
- Optimal Group Australia
The following companies had the contract for Horizon Power’s SPS construction and delivery:
- Energy Made Clean (EMC)
- Magellan Power
- Complete Power Solutions (CPS) National
- EMC Asset Management (EMCAM)
The community battery installations were designed, constructed, installed and commissioned by a local company West Australian Alternative Energy (WAAE). Western Power has recently conducted a process to establishment of a panel of vendors for the procurement of community batteries.
(b) The Distributed Energy Resources (DER) Roadmap, developed by the Government’s Energy Transformation Taskforce, outlines a plan for the integration of high levels of DER within the power system while ensuring safe, secure and affordable electricity for consumers. It has been developed in response to the power system and network risks presented by high levels of DER in the South West Interconnected System.
To respond to these imminent network issues, Western Power will need to invest in traditional network infrastructure, storage or other alternative solutions.
The DER Roadmap identified the requirement for installation of 10 community batteries to alleviate network constraints during 2020, deployed initially as a pilot. The batteries listed in (a) above were installed in line with the DER Roadmap. In accordance with the DER Roadmap, a plan will also be developed later this year covering 2021-24 for Western Power to obtain additional distribution storage services (and installations where services do not emerge) across the SWIS to meet emerging network needs.
The DER Roadmap policies are agnostic with respect to the technology and battery chemistry deployed, instead focusing on the most efficient solution that meets technical requirements.
The Government’s Energy Transformation Strategy is reforming the Wholesale Electricity Market to provide for the integration of new business models and technologies, such as storage, in all parts of the electricity value chain – from the provision of network and market services to the provision of services to individual consumers. Like the DER Roadmap, these reforms focusing on enabling any battery technology to participate where it can provide the services required by the power system.
(c) Government agencies consider a range of factors in making procurement decisions on goods and services including battery storage. The procurement framework enables any available technologies to be offered.
(i) There are no specific policies regarding the selection of battery technology
(ii) A range of relevant policies and strategies apply to the procurement of battery storage including the State Supply Commission’s:
- Value For Money policy, which includes consideration of cost and non-cost factors, including the technical capabilities of the offered product or service;
- Open and Effective Competition Policy, to provide suppliers with fair and equitable access to government supply opportunities whilst maintaining the transparency and integrity of government procurement; and
- Buy Local Policy and WA Industry Participation Strategy, which aim to maximise opportunities for local Western Australian businesses and give preference to tenderers where they can demonstrate benefits to local and regional economies.
The establishment of the Western Power battery panel will also ensure that there is regular market testing for new requirements by a key purchaser of battery storage in Western Australia, so as technologies advance there is an opportunity for them to be utilised. The battery panel will be refreshed annually.
(d) The McGowan Government understands the opportunities various battery technologies presents for Western Australia and created the Future Battery Industry Taskforce in May 2018 to identify and increase all aspects of the industry.
(i) The McGowan Government launched the Future Battery Industry Strategy in January 2019 to increase Western Australia’s participation across the battery value chain from mining and processing to manufacturing and adoption of battery technologies.