Australian developer opts for longer battery duration to boost project economics
West Australian (WA) renewables company Frontier Energy has made its final technology selection for the Waroona Renewable Energy Project Stage One, boosting the capacity of its 80 MW battery component by 12% to 4.5 hours, up from the originally planned four hours of storage.
The project located near Parth is collocated with a 120 MW solar farm. The developer expects the larger battery capacity on site to enable additional storage of electricity during times of low pricing, and dispatch during times of peak pricing, boosting the project’s economics.
Frontier Energy CEO Adam Kiley said the Company is in the fortunate position that the cost of the two largest capital items, solar panels, and the lithium iron phosphate (LFP) batteries, have fallen significantly since the release of the project’s initial definitive feasibility study (DFS) in February, which estimated a cost of $118.5 million.
This unique situation is to Frontier’s advantage, with improved battery capacity.
“Battery prices have fallen due to a combination of factors, including falling raw materials prices, improvement in supply chain, and reportedly weaker than anticipated demand, resulting in an ample supply of batteries in the current market,” he said.
“This unique situation is to Frontier’s advantage, with improved battery capacity resulting in increased duration, approximately 4.5 hours compared to 4 hours in the DFS, increasing Waroona’s revenue while at the same time achieving a lower capital cost.”
DC coupled system for lowest capex
The battery at Waroona will use a DC coupled system deemed the lowest capex and most efficient way of integrating battery storage into new renewable energy installations.
In a DC coupled system, the battery is connected directly to the DC side of the renewable energy source, the solar panels. DC coupling eliminates the need for an additional inverter to convert DC to AC since the battery system operates directly with the DC electricity generated by the renewable source.
Waroona has the potential to be Australia’s largest standalone renewable energy projects, as Frontier controls 868 ha of adjoining freehold land while also having approvals in place for a connection onto the South West Interconnected System (SWIS) electricity network, with a terminal adjacent to the project.