Energy Vault Executes EPC and O&M Contract with ACEN Australia for 200 MW/400 MWh of Battery Energy Storage Deployments
Energy Vault has signed a significant contract with ACEN Australia for the deployment of two Battery Energy Storage Systems (BESS), totaling 200 MW/400 MWh, to be integrated with ACEN’s 720 MW New England Solar project in New South Wales.
The project utilizes advanced grid-forming inverter technology to stabilize the electricity system, which is important as coal-fired generators in NSW close down.
Construction is set to commence this year with a target operational date in 2026. This initiative is part of ACEN's broader strategy in Australia, supported by the NSW Government’s Emerging Energy Program.
- Execution of EPC and O&M contracts ensures clear project guidelines.
- Project totals 200 MW/400 MWh capacity, enhancing energy storage capabilities.
- Incorporates advanced grid-forming inverter technology for system stability.
- BESS to be operational by 2026, enhancing long-term energy solutions.
- Project is part of the NSW Government’s Emerging Energy Program.
- ACEN is actively developing over 1 GW of projects in Australia, showing significant market presence.
- The New England BESS will be critical for transitioning to renewable energy.
- Project completion is delayed until 2026, which may affect near-term investor sentiment.
- Reliance on government programs like NSW's Emerging Energy Program could indicate project dependency on subsidies.
- Potential risks associated with integrating new grid-forming inverter technology.
The agreement between Energy Vault and ACEN Australia to deploy two Battery Energy Storage Systems (BESS) is a significant step in Australia's transition to renewable energy. These systems, with a combined capacity of 200 MW/400 MWh, will be co-located with the New England Solar project in New South Wales. This project will provide essential system stability services that coal, hydro and gas generators currently supply. The integration of grid-forming inverters enhances the stability of renewable energy supplies, which is paramount as New South Wales phases out its aging coal-fired power plants.
From an investment perspective, this deal highlights Energy Vault’s capabilities in pioneering advanced energy storage solutions. The project not only promises to bolster Australia's grid reliability but also highlights the company's competitive edge in the energy storage market. Investors should consider the long-term potential for similar projects globally, as the demand for advanced energy storage solutions is expected to rise.
The financial implications of this contract for Energy Vault are substantial. The agreement encompasses Engineering, Procurement and Construction (EPC) as well as Operations and Maintenance (O&M). This multi-faceted deal provides a steady revenue stream not just from the initial construction but also from the long-term maintenance of the BESS. This adds financial stability and predictability to Energy Vault’s revenue model. Additionally, being part of a high-profile project supported by the New South Wales Government's Emerging Energy Program reduces project risks and underscores the company's credibility.
For retail investors, the key takeaway is the dual revenue model which can lead to improved financial health for Energy Vault. This model mitigates risks associated with one-time project revenues and provides a more consistent income stream.
The deployment of the New England BESS project is a clear indicator of the growing market for battery energy storage systems, especially in regions transitioning from fossil fuels to renewable energy. The project’s reliance on grid-forming inverter technology, managed by the Vault-OS energy management system, is particularly noteworthy. This technology is a game-changer, enabling the grid to maintain stability without relying on traditional coal and gas generators. As regions like New South Wales move towards renewable energy, the demand for such advanced storage solutions will likely increase.
For investors, this signifies a burgeoning market opportunity. As more regions retire their coal and gas plants, the need for stable, reliable energy storage will grow, positioning companies like Energy Vault favorably within the market.
ACEN Australia and Energy Vault to begin deployment of two battery energy storage systems (BESS), with a total capacity of 200 MW/400 MWh, at ACEN Australia’s 720 MW New England Solar project
The project will be built using the most advanced grid-forming inverter technology which can provide system stability services that coal, hydro and gas generators currently provide
Grid-forming inverters will be integrated with Energy Vault B-Vault DC block, managed by the Vault-OS energy management system
Energy Vault has entered into engineer, procure and construct (EPC) and operate and maintain (O&M) agreements with ACEN for the procurement, construction, operation and maintenance of ACEN’s 200MW/400MWh BESS to be co-located with ACEN’s New England Solar project.
Energy Vault has been appointed to lead the construction of ACEN Australia’s New England BESS located in
ACEN Australia Managing Director David Pollington said the battery and its grid forming inverters are a game-changer for the National Electricity Market.
“The New England BESS will be built using some of the most advanced grid-forming inverter technology which can provide system stability services that coal, hydro and gas generators currently provide,” he said.
“With NSW’s ageing coal fired generators due to close, large battery energy storage systems like this are critical for the successful transition to an electricity grid supplied by renewables.”
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The BESS will be charged and discharged on a daily basis and designed to dispatch stored renewable energy at peak consumption hours to help meet the high demand during New South Wales’ peak load hours while reducing the region’s reliance on coal-fired power generation. Currently supported by the NSW Government’s Emerging Energy Program, the New England BESS project is a part of ACEN’s broader strategy in
About Energy Vault
Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.
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FAQ
What is the capacity of the battery energy storage systems deployed by Energy Vault and ACEN Australia?
When will the Energy Vault and ACEN Australia BESS project be operational?
What technology will be used in the Energy Vault and ACEN Australia BESS project?
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Is the Energy Vault and ACEN Australia BESS project part of any government program?
