ACLE Services

💬 Can Australia keep up with the growing demand for battery storage?

With projections showing that by 2050, Australia will need around nine times its current utility-scale solar and wind capacity, our focus must shift to how we store and manage these renewable resources effectively. At ACLE Services Pty Ltd this has seen us place renewed focus on energy storage and BESS solutions for our projects.

According to Rystad Energy, we're on track to exceed the 2024 forecast of 4 GW for major battery projects. Currently, 3.6 GW of battery storage capacity is already under construction in 2024, with key players like Origin Energy and Energy Australia, leading the charge. This surge is driven by a robust pipeline of projects, falling battery cell costs, and numerous storage tenders nationwide.

At ACLE we have seen firsthand the significant evolution in battery storage technology. Whilst some of the earliest projects in Australia focused on short storage durations of between1 to 1.5 hours (primarily for frequency control), now, we’re seeing a shift towards longer storage solutions designed to capture and shift the output of wind and solar energy. This shift is crucial for replacing fossil fuels and storing excess solar power for evening use, with up to four hours of storage capacity becoming the norm.

Falling battery cell costs, which are now decreasing at a pace similar to solar PV modules a few years ago, combined with record-low PV module prices, are creating a more favourable environment for battery storage.

However, despite these advancements, our industry still faces significant challenges. High upfront costs and complex grid integration are hurdles our industry must overcome.

Supportive government policies and financial incentives are crucial in this regard. With targeted tax credits, grants, and streamlined regulatory processes, we can make battery storage projects more economically viable, attract private investment, and accelerate our progress.

💬 Close to 60% of Australians support the transition away from fossil fuels.

With renewable energy now accounting for 40% of the nation’s electricity demands and with record green energy output this year, it's essential to ensure communities feel supported in Australia’s transition.

Ipsos' latest shows that whilst there is strong support for the energy transition, there's a low understanding of progress and existing scepticism about meeting net-zero targets. Concerns include potential impacts on the cost of living and network reliability.

Solar and duration battery storage play a crucial role in this transition. Despite significant achievements in renewable energy deployment, Australia still grapples with the challenge of seamlessly integrating these sources into its power grid. Effective storage utilisation of renewable energy is no longer just a positive addition; it is a must-have, to meet the nation’s high demand for renewable energy usage, particularly solar power.

Interestingly, 59% of respondents support Australia’s transition away from fossil fuels and towards renewable energy generation, with 66% of inner regional residents backing this move.

Over 70% of clean energy projects are located in regional areas, making social license crucial for success. However, among the 17% of respondents who oppose this transition, 29% are from outer regional areas. This indicates that while the green sector is gaining social license overall, additional efforts are needed to communicate the transition plan effectively to outer rural communities.

As an EPC in the solar and battery sector, we recognise that community consultation and engagement are vital to our projects. It's essential for both metropolitan and rural communities to stay informed about the transition and its impacts on their futures.

We’re proud of the positive trends we’re seeing with communities increasingly embracing the evolving energy market, and the numbers reflect this shift in perspective.