Capital installs mega-battery on ScoMo’s coal plant

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Via Bloomie:

Australia is planning another giant grid-scale battery as the global roll out of super-sized energy storage projects accelerates.

The project in New South Wales-state, which will be three times larger than the current No. 1 battery in California, aims to store energy for the grid as Australia raises its share of renewable power.

Renewable energy fund CEP.Energy Pty plans to begin construction on the 1,200-megawatt unit early in 2022, and bring the battery online the following year, the firm said Friday in a statement.

Big batteries “will play a major role in filling the gaps left by the gradual retirement of coal and gas-fired generation assets,” Chairman Morris Iemma said in the statement. The project will support the Hunter Valley region’s longer-term shift from its role as a coal-mining hub, he said.

Amusingly, ScoMo’s power troglodytes are busing tearing at each other’s flesh over whether to publically fund a 1000mw coal or gas plant in the Hunter which will take many years to build and won’t be able to compete:

Australian energy costs compared
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In five years renewables will be much cheaper:

Price of solar and batteries over next 5 years

If it goes the way we think it will, renewables plus full storage will be more than 60% cheaper than coal and gas:

Price of solar and batteries over next 5 years
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But hey, the adults are in charge.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.