Spainâ€™s utility giant Iberdrola said Monday it will operate a 50-megawatt (MW) battery-powered energy storage system in New South Wales, Australia, Kallanish Energy reports.
Subsidiary Infigen reached an agreement with TransGrid to operate the facility for 10 years. The so-called Wallgrove Grid Battery project is currently under construction by TransGrid and is slated to enter commercial operation in the second half of 2021.
Under their undisclosed deal, Infigen will have dispatch control and receive all revenues from the spot market related to its operation. TransGrid will receive a fee for the rental of the storage facility and will be responsible for its maintenance.
â€śThe initiative allows Infigen to increase its support portfolio, as well as significantly increase its renewable energy capacity, with the purchase and sale of clean energy to customers under supply contracts,â€ť said Iberdrola. â€śWallgroveâ€™s battery will provide robustness to the grid and stability to the power supply system in this state.â€ť
Infigen already owns a 25-MW battery at the Lake Bonney wind farm, in the state of Virginia.
Australia is a â€śplatform for growthâ€ť for Iberdrola following the acquisition of Infigen. The operation allows the company to enter an expanding market, in line with its strategy to become â€śthe largest renewable energy company in the world.â€ť
Iberdrola currently operates 800MW of solar, wind and storage batteries in Australia and has another 453MW under construction. Additionally, it has more than 1,000MW in different stages of development.
Australia targets a 48% renewables share in its energy mix by 2030.