Project Overview 

The HPR (Hornsdale Power Reserve) is the world's first large-scale battery system. It offers crucial grid-support services.

It was developed by a consortium of Neoen, a French renewable energy firm and Tesla, the largest electric car manufacturer in the world. However, Neoen owns and operates the facility.

The main purpose of the battery is to improve the stability and security of the South Australian electrical supply. It helped integrate renewable energy into South Australia. It also contributed to a decrease in power outages.

The original 100 MW (129 MWh) project was completed in November 2017. The Hornsdale Power Reserve extension of 50 MW (64.5 MWh) was completed in September 2020.

Read: Eku Energy Starts the Construction of 130 MWh BESS Projects in UK

Project Background

In September 2016, South Australia was hit by severe storms. It damaged homes and important infrastructure, including more than 20 energy transmission towers. As a result, the communication lines got damaged. It caused a number of wind farms to shut down. There was a rapid shortage of power. 

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South Australia started getting more power from Victoria through the Heywood interconnector. The extra power that was being sent overloaded the interconnector, and it was turned off. This resulted in power cuts for the whole state of South Australia. A significant portion of the state lost power for several hours. 

More power outages and load-shedding happened between September 2016 and February 2017. This made the South Australian government execute a policy plan to fix problems with the power supply. In March 2017, the SA government reacted to the "energy crisis" by announcing the Energy Plan. It was an AUD 550 million plan to improve energy security in the state. The plan included building Hornsdale Power Reserve, Australia's largest battery storage project. 

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Project Timeline

Important dates in the project timeline are given below: 

Location Details

The HPR is located in South Australia's Mid-North area. It's about 15 km north of Jamestown and a three-hour drive from Adelaide. It is right next to Neoen's Hornsdale Wind Farm. 

The power reserve covers an area of 2.471 acres. The location is quite important due to the abundant wind energy accessible in that area. It will help the power reserve in capturing energy. 

Project scope

The Hornsdale Power Reserve is the world's strongest lithium-ion battery. It includes a 150 MW (194 MWh) grid-connected energy storage facility operated by Neoen and located adjacent to the Hornsdale Wind Farm. The initial phase, which included a 100 MW (129 MWh) project, was completed in a record-breaking 100 days and proved effective in terms of electricity cost savings. Considering the multiple benefits offered by the initial project, a 50 MW (64.5 MWh) expansion project was initiated in 2019 and completed in 2020. 

The battery uses Tesla powerpack lithium-ion modules. Each power pack is a direct current energy storage device. It contains 16 independent battery pods. Almost 5 powerpacks generate 1 megawatt hour of electricity. The battery consists of hundreds of linked powerpack towers. 

The battery can power 30,000 homes. The battery's 129 MWh capacity delivers approximately 75 minutes of electricity at full discharge. It uses the same 275 kV network connection point as the 300 MW Hornsdale Wind Farm. It acts as a charging source and supplies electricity during peak hours to ensure system security.

Read: Masdar Arlington Energy Breaks Ground on Two BESS Projects as a Part of $1.27 Billion Investment

Project Cost 

The cost of the initial phase of the project was AUD 90 million. The SA Government decided to pay AUD 41.8 million over the course of the project agreement for battery storage services. This money came from its AUD 150 million Renewable Technology Fund. According to the project agreement, the SA government paid the HPR group every month. In return, the HPR group gave the government the sole right to use a reserved 70 MW power output capacity and a reserved 10 MWh energy storage capacity. The remaining extra space in the battery could be sold to the NEM by the HPR consortium in order to generate additional revenue.

The expansion project cost was AUD 108.39 million which included the following, 

• AUD 22.90 million from the state government
• AUD 12.21 million from ARENA - Australian Renewable Energy Agency 
• Up to AUD 76.33 million from CEFC- Clean Energy Finance Corporation in cheap loans

Read: Why is BESS Needed to Harness the Maximum Potential of Solar Energy

Contractors Involved 

The contractors involved in the Hornsdale Power Reserve project were Neoen and Tesla. Neoen, a French renewable energy firm, led the consortium responsible for constructing the battery. In 2019, Neoen announced to expand the capacity by an additional 50 MW/64.5 MWh. This resulted in bringing the total combined capacity to 193.5 MWh.

Tesla, on the other hand, was awarded the contract in July 2017 to construct the initial 100 MW/129 MWh lithium-ion battery. Additionally, in November 2019, Tesla signed an agreement with Neoen to provide a 50 MW/64.5 MWh lithium-ion battery for the power reserve expansion. 

These two companies played crucial roles in the development and expansion of the Hornsdale Power Reserve, showcasing their expertise in renewable energy and battery technology.

Benefits of the Project

Here are some of the benefits associated with this project,

SIGNIFICANT COST SAVINGS

Aurecon independently assessed Big Battery performance in 2018 and 2019. The studies proved how the project promotes the NEM and saves all electricity customers. The battery saved AUD 176.96 million in 2019 by providing Frequency Control Ancillary Services.

IMPACT ON COSTS

The study shows the battery's rapid response when South Australia is disconnected from the grid. On November 16, 2019, the state was isolated owing to an interconnector failure, leading to heightened market volatility and frequency. The Big Battery quickly restored the energy system frequency, resulting in savings of AUD 21.36 million for consumers.

PREVENTING BLACKOUTS

South Australian blackouts are prevented by Hornsdale Power Reserve. It responds rapidly and correctly to grid frequency changes that would have previously caused blackouts. When SA is separated or ‘islanded’ from the grid, the battery keeps the lights on and the system stable. This has happened several times since the battery was used.

Read: Finish Utility Helen is Launching a 40 MW Battery Energy Storage Project in Finland

Conclusion 

Neoen's Hornsdale Power Reserve is an innovative energy storage facility. It deals with the grid stability issues in South Australia. This is the largest reserve of lithium-ion batteries in the world. The grid-scale batteries offer essential support services for the power grid, showcasing their usefulness in stabilizing power networks. 

The project is backed by a strategic alliance between Neoen, Tesla, and governmental organizations. It demonstrates cooperative endeavors to create enduring energy solutions. It exhibits exceptional performance and technological advancements. The Hornsdale Power Reserve is a prominent model for large-scale energy storage initiatives worldwide. It also contributes to establishing a more resilient and enduring energy future.

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