Australian Energy Storage AllianceOpportunities for Energy Storage and

Hydrogen Economy Solutions in Australia

Mary HendriksINDUSTRY EXECUTIVE, AESA

Energy Storage Summit Japan October 2018

Bloomberg NEF ‘Energy

Storage Forecast 2017-30’

lists Australia as “one of 8

countries expected to lead

massive boom in global

energy storage uptake” to

2030

Bloomberg NEF ‘Energy Storage Forecast 2017-30’

Via RenewEconomy

A Leader in Energy Storage Uptake

Residential

C&I and Microgrid Projects

Utility / Grid Scale

- National Electricity Market (NEM)

- South West Interconnected System (SWIS)

- Northern Territory Electricity NetworksThe Australian Energy Market

Commission (AEMC) makes &

amends the National Electricity

Rules that underpin the NEM

Where are the Opportunities?

Australians have installed solar PV on 1.9 million rooftops (1 in 5 homes)

In 2017 est. 21,000 residential batteries installed (190 MWh )

Cumulative residential installations est. at 28,000 ( 244 MWh )

OPPORTUNITY: ES combined with Energy Management

• Virtual Power Plant (VPP’s) innovative software

• Proposed 40,000 solar + storage VPP in South Australia

• Demand management via locally generated/stored renewable energy

Graph and data from AUSTRALIAN BATTERY MARKET REPORT 2018 SUNWIZ

www.sunwiz.com.au

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Reported Home Energy Storage System

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Residential Solar PV plus Storage Opportunities

Mining sites, remote communities, islands

Urban microgrids for energy security, fringe of grid

Built environment and heavy industry

OPPORTUNITY: ES for Local Power, Energy Security

• Regional microgrids, eg Horizon Power, ONSLOW, WA

• Remote towns and mining sites for diesel reduction, cost saving, eg Sandfire Resources DeGrussa Mine

• Resorts or island communities, eg King Island

• C&I, eg Whyalla Steelworks

Mackerel Islands Tourist

Resort in (WA) built 325 kW

solar system with 640 kWh

lithium ion storage

Commercial & Industrial and Microgrid Projects

City of Sydney recently unveiled the first industrial-scale

battery in the Sydney metropolitan area.

The battery was installed by TransGrid, “behind the meter”,

and is powered by more than 1,600 solar rooftop panels on the

Alexandra Canal depot.

TransGrid CEO, Paul Italiano: “large-scale batteries will play

a large role in the future of electricity network services”.Lord Mayor Clover Moore and TransGrid CEO Paul

Italiano at Aexandra Canal Depot

Commercial in Urban Areas - example

Distributed large scale energy storage with wind and solar farms for dispatchablerenewable energy(Wind set to almost double, Solar PV to triple by 2020, ~ 18 GW expected)

• Largest lithium ion battery site, Hornsdale Power Reserve, SA• Solar plus 250 MW pumped hydro site, Kidston, QLD ( D.A)• SolarReserve’s Aurora Solar CSP plant, SA (under construction)

OPPORTUNITY: ES with Generation or Network DeferralDrivers are:

Closure of ageing coal fired generationRenewable Energy targetsPower Purchase and Offtake agreements for renewable energy, Managing peak demand plus ancillary services /FCAS

Wind Turbine at Hornsdale, S.A.

Utility / Grid Scale Opportunities

Australia has huge solar and wind resources for water electrolysis

Hydrogen for Energy Generation & Storage• for powering remote and mining communities

• for industrial processes

• for dispatchable generation, long term storage, eg seasonal

Hydrogen as a Transport Fuel• for equipment, trucks and long distance rail

Hydrogen for Export• AU exports approximately 3/4 of the energy it produces, as coal and gas

• potential for hydrogen to be a carrier of renewable energy

Hydrogen Economy Solutions in Australia

ARENA funded Pilot Project – ATCO

• developing a Clean Energy Innovation Hub (CEIH) in

Western Australia, to be operational by 2019.

• the CEIH incorporates the production, storage and use of

hydrogen, plus commercial application in microgrid systems.

• the CEIH will integrate ‘green’ hydrogen created by water

electrolysis – using solar energy

• hydrogen to be used in microgrid system at the Jandakot

facility.

https://arena.gov.au/projects/atco-hydrogen-microgrid/

Hydrogen Economy Solutions – energy generation & storage

Strong interest, low uptake to-date of Hydrogen Fuel Cell vehicles

• The ACT Government has purchased 20 Hyundai’s Nexo vehicles

as part of renewable fuels test - cars expected in 2019

• Pilot projects e.g. in SA with Hydrogen buses

CSIRO Tech for Hydrogen Fuel Future

• CSIRO new membrane technology that separates ultra-high purity

hydrogen from ammonia

• Recent advances mean renewable hydrogen production is expected

to become competitive with fossil fuel-based production, providing

an opportunity to decarbonise both the energy and transport sectors

Opportunity for Partnerships around Innovation

Fuel Cell Vehicle

CSIRO Press Release, 8 Aug 2018

www.csiro.au/en/News/News-releases/2018/CSIRO-tech-accelerates-hydrogen-vehicle-future

Hydrogen Economy Solutions – transport fuels

REPORT: Hydrogen for Australia’s Future 2018, Dr Alan Finkel, Chief Scientist, Australia

Opportunity:

• Australia to become a large scale exporter of ‘renewable’ hydrogen to Asia

• Develop export hydrogen industry alongside existing trade relationships with LNG

• Export hydrogen as ammonia (NH3) using existing well-established infrastructure

Develop Export Hubs e.g. Pilot Plant at Port Lincoln in South Australia (H2U)

• Many states are planning to capitalise on high penetration of renewable energy, and to have

ports capable of exporting hydrogen either as liquid or stored as ammonia.

• Potential huge market for hydrogen exports

Hydrogen Economy Solutions – for export

DETAILS: https://arena.gov.au/knowledge-bank/opportunities-for-australia-from-hydrogen-exports/

Website EnergyStorageAlliance.com.au

Twitter @AESAlliance

Drivers are phase out of coal fired generation, high cost of power, the uptake of solar

PV, power purchase agreements, integration of smart systems and issues relating to

security of supply.

Emerging markets for production, local use and export of Renewable Hydrogen

To find out more, see Australian Energy Storage Alliance

Australia is a diverse market for Energy Storage

Details supplied in this presentation are not an endorsement of any product or service