The Morrison Government is backing a longer-duration energy storage project to help keep the lights on in South Australia. 

The Government will provide $5.7 million through the Australian Renewable Energy Agency (ARENA) to Yadlamalka Energy to install an 8 megawatt-hour utility-scale vanadium flow battery alongside a 6 megawatt solar photovoltaic array at Neuroodla, in the Far North near the Flinders Ranges.

The $20.3 million project will deliver solar-generated electricity on demand. 

Located within the SA Power Networks distribution network, the project will be connected to the National Electricity Market and will help South Australia’s energy security.

Vanadium flow batteries, originally developed in Australia, are a form of heavy-duty stationary energy storage and do not degrade with use or over time like conventional lithium-ion batteries, and have a longer life span.

Minister for Energy and Emissions Reduction Angus Taylor said longer duration energy storage is one of five priority technologies identified by the Morrison Government in the Technology Investment Roadmap to accelerate the competitiveness of new and emerging technologies with higher emissions alternatives.

“This project will ensure South Australians can access the power they need, when they need it,” Minister Taylor said.

“Longer duration energy storage is a key focus because it will enable reliable, firmed wind and solar at prices around the average wholesale electricity price of today.

“Getting the technologies of the future right will support 130,000 jobs by 2030 and drive down emissions.

“Our Government is focused on providing affordable and reliable power to all Australians, which is why we’re backing this project through ARENA to improve South Australia’s energy supply and keep the lights on.

“We are investing in the technologies that will help us meet our emissions reduction targets, deliver reliable and affordable power to households and businesses,  strengthen the economy and drive job creation.”

The Member for Grey Rowan Ramsey said there has been a large drop in the price of wholesale electricity with the heavy investment in renewables in South Australia.

“This has created an often, over-supplied market,” Mr Ramsey said.

“This in turn has created more instability in the grid and stabilisation projects like this one are essential to back up the renewable generators.”

The project will create up to 100 jobs during the construction phase as well as ongoing employment opportunities for locals.

Neuroodla is located at a relatively weak part of the distribution network. The connection of energy storage alongside additional renewable energy generation is expected to improve the reliability of energy supply within the region.

The first power generated from the project is expected to flow by early 2022.

Media contact:

Minister Taylor's office: 02 6277 7120