Energy storage and grid prioritized by Australian state’s $635m fund

The government of NSW has announced the first investment mandate for its AUD $1 billion Energy Security Corporation (ESC), focusing on energy storage.

The ESC, financed by the Restart New South Wales fund to drive economic growth and productivity in the state, aims to co-finance clean energy projects – specifically excluding nuclear and carbon capture facilities – as a means of attracting private investment.

The key priorities in the initial mandate include battery and pumped hydro energy storage; grid security and infrastructure; and community energy generation, storage, and end-use equipment.

“The key priorities for investment include short- to long-duration [energy] storage projects that capture excess renewable energy to maximize use of electricity generated from solar and wind [power sites,” said the NSW government in a statement. “It will also cover projects that will upgrade infrastructure to ensure smooth operation of the grid and coordinate consumer energy resources in households, businesses, and the community, such as virtual power plants.”

NSW Minister for Energy Penny Sharpe said the ESC, which is expected to function in a similar manner to the federal Clean Energy Finance Corporation, will help build a more reliable energy system and will work with the private sector to “plug investment gaps” in the market. “NSW will invest AUD 1 billion in critical projects to deliver more affordable, clean, and reliable energy to homes and businesses across the state,” she said. “After a decade of privatization, the Energy Security Corporation gives the people of NSW the chance to invest in their energy system.”

The NSW government said the release of the investment mandate was a key milestone for the ESC, enabling it to begin investigating investment opportunities.

Newly announced ESC Chief Executive Officer Paul Peters, a founder and former head of advisory firm Novo, said the aim of the state-owned green bank will be to direct capital where it is needed most to create an electricity network that helps NSW meet its emission reduction targets.

Referring to federal utility planning body the Australian Energy Market Operator (AEMO), Peters said, “AEMO’s latest market report highlights the urgent need for new [electricity] transmission infrastructure and long-duration storage to ensure grid stability as the renewable transition accelerates. The ESC is committed to playing a key role in addressing these challenges and I look forward to working closely with industry partners to deliver the infrastructure NSW needs for a secure and sustainable electricity network.”

The state said it expects to soon appoint the inaugural ESC board.

From pv magazine Australia.