ACLE Services

28/08/2024

💬 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.

19/08/2024

🔆 AEMO Engineering Roadmap Released.

Last week Australian Energy Market Operator (AEMO) released its latest Engineering Roadmap Priority Actions Report, and for all those non-engineering types, in summary, it marks a significant milestone in Australia’s ongoing renewable energy transition.

The past year has seen remarkable progress across Australia, with record-breaking renewable pe*******on in the NEM, including a 72.1% renewable pe*******on record and 101.7% of South Australia’s demand met by distributed photovoltaics on the 31st of December. These achievements underscore the vast potential of renewables at home, and the critical need to accelerate our transition efforts.

The Engineering Roadmap is crucial in ensuring that our power system can reliably operate with up to 100% renewable generation. By proactively addressing engineering challenges, this roadmap supports the evolution of our energy portfolio and enables continued market growth.

AEMO’s completion of 17 out of 18 priority actions in FY2024, such as studies on inverter-based generation and the development of electric vehicle standards, showcases the power of collaboration across the energy sector. However, the scale of effort required as we move forward will be unprecedented.

With a $15 million Australian Renewable Energy Agency (ARENA) grant backing AEMO’s roadmap in FY2025, we are fully invested in seeing the steps taken to deliver foundational enablers, provide investment visibility, and progress operational readiness. As an EPC firm, ACLE is proud to play our part in this transformative journey.

15/08/2024

🔆 Who says solar can’t provide energy during winter?

Despite intense winter weather conditions, South Australia and Victoria are leading the way with an impressive 80% of their electricity demand met by solar power.

During one of the most energy-intensive times of the year, rooftop solar has supplied up to 80% of the electricity demand in South Australia and contributed to record-low operational grid demand in both South Australia and neighbouring Victoria over the weekend.

Gone are the days of scepticism about the effectiveness of green energy, particularly during the winter months when sunlight is less abundant. Rooftop solar has even produced enough power to meet all local demand on several occasions in South Australia, and we're seeing promising developments in other states like Western Australia and Queensland.

Australian Energy Market Operator (AEMO) anticipates that the future energy landscape will focus on flexible and dispatchable power sources rather than traditional baseload power plants.

This is where battery storage systems come into play. Due to current regulations, Australian electricity networks have been restricted from investing in, or owning, generation or storage assets, and many regulations are yet to align with advancing technology.

I can’t stress enough that solar - whether rooftop or utility PV - and battery energy storage systems are crucial partners and it’s vital that regulations evolve to reflect this synergy.

This means allowing networks to invest in and manage these critical assets. By updating regulations, we can unlock significant additional capacity—like 5 GW of rooftop solar, 7 GW of new generation, and 5 GW of battery storage by 2030, according to Energy Network Australia.

08/08/2024

💬 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.

31/07/2024

💬 Northern Territory signs $250 million deal with the Federal Government for transmission projects

It’s encouraging to see the Northern Territory and federal government signing a landmark $250 million deal to upgrade and fund new transmission projects.
Key facts worth mentioning:

✔️ Investment was made available through the $19 billion Rewiring the Nation (RTN) fund and managed by the Clean Energy Finance Corporation (CEFC).
✔️ The agreement will bring community solar and clean energy technologies to help those who can't install rooftop solar save up to $500 a year on energy costs.

I support NT Minister for Energy and Renewables Kate Worden’s emphasis on battery technology as a key solution for ensuring a reliable power supply in the state. I’ve long argued that effective battery energy storage requires careful planning to enhance network flexibility and support the development of new resources and transmission infrastructure.

ACLE Services currently has a planned pipeline of 27 batteries that will be rolled out across regional Australia, delivering a combined capacity of 270 MWh. These projects are part of ACLE's national pipeline, with additional projects and updates currently underway.

For projects like these, EPC firms such as ACLE need government support and tenders. It's also crucial to manage the closure of coal plants and boost renewable energy with reliable technologies like DBESS.

25/07/2024

💬 WA signs agreement to lock in 6.5 TWh of Renewables!

Terrific news out of the country’s west this week as the Renewable Energy Transformation Agreement was unveiled, unlocking at least 6.5 TWh of new solar and wind power across the state. The agreement made between WA and the federal government will also be supported by 1.1 GW of new storage to ensure grid reliability and energy stability as the state continues its renewable transition.

The agreement was inked concurrently with the opening of WAs first Capacity Investment Scheme tender, which aims to deliver 2,000 MWh of capacity projects into the WEM. The massive opportunity for clean energy projects in WA is illustrated by Baringa in the graph below.

This is a significant announcement for the once coal reliant state along its renewable energy transition. It has long been noted that WA and the world’s largest, isolated grid has the most difficult path toward renewable energy adoption and net zero, and this is why announcements such as these are crucial. Whilst we at ACLE do not currently have aqny projects in WA, announcements and market signals such as these are crucial toward attracting high quality renewable projects.

17/07/2024

💬 South Australia Set to Become the First Non-Hydro Grid in the World to Achieve 100% Net Renewables

South Australia has taken a significant step toward complete electricity decarbonisation, as it was awarded federal funding to guarantee that the state becomes the first non-hydro reliant grid in the world to achieve 100% net renewable energy.

The agreement, aimed at ensuring the state achieves its goals by 2027, will see the federal government underwrite a minimum one gigawatt of new wind and solar generation capacity and another 400 MW (1,600 MWh) of storage. This is significant as it cements SA as Australia’s ongoing leader in the clean energy transition, largely reliant on wind and solar.

Last week Open NEM reported that solar energy contributed 13.7% of the state’s total, an already impressive share which is set to skyrocket in coming years.

With a number of our projects, currently operational in South Australia, ACLE is proud to be able to contribute to this landmark achievement and our team looks forward to doing our bit to ensure this 2027 target is met.

11/07/2024

💬 Storage key to getting more solar installed!

The latest SunWiz data shows a slowdown in the residential rooftop market, with June installations dropping by 14% compared to May. Will it be a blip or is it a sign of a longer-term drop off in rooftop solar?

At ACLE, we recognise the importance of residential solar – it remains the best way for households to reduce their energy bills and the Energy Market Operator (AEMO) estimates almost 80% of homes will have solar by 2050, up from around 33% today. This suggests the Sunwiz data is a minor blip, with massive growth to come supported by falling prices for panels.

To achieve this growth, storage is going to become increasingly important, so the rollout of utility-scale and residential batteries must be an ongoing priority for energy system planners. This will ensure there is the storage capacity to soak up the energy generated from all those solar installations during the day, which can be sent back to the grid when it is needed.

Our team is pleased to be working on storage projects up and down the country that will provide this much-needed capacity. We are looking forward to bringing this online so the solar revolution can continue.

11/07/2024

💬 Future Made in Australia, must work for Australians

As the director of ACLE Services Pty Ltd, an Australian owned and operated EPC, I am delighted to see the Federal Government’s $22.7bn Future Made in Australia Bill presented to parliament. The Bill, introduced by Treasurer Jim Chalmers, aims to help fund the transition of the economy toward renewable energy by supporting clean industries through investment, and supporting stronger community benefit principles. The Bill would see a significant investment made into key areas designed to successfully transition the economy toward realising its energy superpower status, including workforce and skills capability, renewable investment opportunities and making marked improvements to the approvals process for projects.

Whilst this is clearly a significant shift for the Government to make, what’s more important is the equal focus it has placed on the crucial dimension of local benefit and support. Which, as has been proven time and time again, is critical to successfully achieving any major development.

For us at ACLE, this announcement is great news. Enabling faster approval times, improving avenues for investment in great projects and upskilling Australia’s crucial skilled workers are all fantastic developments. However, we know that at the end of the day, the Australians whose backyards will house these projects, their businesses and their skills matter most.

Whilst the investment channels (detailed below by the Federal Government) are essential, we must keep Australians at the heart of them. This is supported by the Bill’s prioritisation of benefit principles, which aim to act as a guarantee that these investments will benefit and prioritise local workers, industry and communities. This is something ACLE has always aimed to do in our own practice and workforce.

07/07/2024

🔆 420+ Community Batteries Greenlit Across the Nation 🔆

Some great news over the past week, as over 420 community batteries received approval from the Federal Government and Australian Renewable Energy Agency (ARENA) as the momentum behind local network capacity and rooftop solar builds.

The batteries are set to benefit local community groups across every state and territory, alleviating local network constraints, and will range from between 50 kilowatts (kW) and 5 megawatts (MW), providing a total of about 280MWh.

Darren Miller, ARENA's CEO, hailed the initiative as the “missing link in our renewable energy system”, assisting to reduce costs and fill crucial reliability gaps to the nation’s communities.

What’s more, the Yarra Energy Foundation recently released a survey testing Aussies’ feelings toward community batteries, revealing overwhelmingly strong support. This support for local energy initiatives opens the path for further investment in stabilising and securing local energy supply.

ACLE welcomes this neighbourhood battery initiative, which enables further solar installation across the nation, as a crucial step in unlocking the full potential of the renewable resources Australia has to offer.

27/06/2024

🔆 Major project update 🔆

Our latest project in Tongola, Victoria marks a significant landmark in ACLE’s company journey. Read about our latest development in pv magazine , where we detail our partnership with Sustainable Energy Infrastructure (SEI), ACEnergy, and Powercor Australia.

ACLE Services is set to deliver 135MW of critical energy and storage capacity and will be tasked with Engineering, Procurement and Construction (EPC), with commissioning planned progressively to July 2025. ACLE will also be called on to provide O&M services to the projects under a long-term O&M contract.

This is an exciting announcement for the entire ACLE team, and we look forward to delivering this significant DBESS project.

Read below and let us know your thoughts 👇🏼

Australian EPC contractor ACLE Services has broken ground on a 5 MW / 10 MWh battery energy storage project in northern Victoria that is the first in a planned pipeline of 27 batteries that will be rolled out across regional Australia delivering a combined capacity of 270 MWh.

26/06/2024

💬 New South Wales Establishes Energy Security Corporation to Plot Renewable Transition pathway

Some more positive news out of New South Wales this week, with legislation passed to establish the Energy Security Corporation who will be tasked with ensuring the reliability and security of sustainable energy. The Corporation will be established with $1 billion to throw toward accelerating private clean energy solutions and carbon capture.

This is a crucial step for the state as it looks to prioritise security and reliability as it deals with a massive, expected inflow of renewable energy and an increasingly visible gap in long duration storage to manage intermittency challenges.
In a statement to Parliament, Minister for Emergency Services, Jihad Dib, stated that the role of the Corporation would be to ensure mutual benefit for all in the state and stressed the importance of filling gaps for private investment in medium to long duration storage.

“We also know that capital for those sorts of clean energy technologies is available but, for a variety of reasons, those projects are not able to attract the required investment from the private sector - Those reasons include policy uncertainty on the timing of coal power station closures, a lack of market price signals for system benefits created by essential system services such as inertia, and construction cost uncertainty.”

The figure below from the Energy Council’s report on Long Duration Storage highlights the urgent need for bodies such as the Energy Security Corporation to manage the replacement of coal generation and move rapidly toward renewables and storage solutions.

This is a promising initiative from NSW, especially given the state’s reliance on fossil fuels. I look forward to seeing the role the ESC will take in safeguarding the transition and ensuring targeted renewable energy support.

NSW Government Penny Sharpe Penny Sharpe NSW Government