The current opportunity
Western Power has procured three (3) Medium Voltage (totalling 8MWh / 3MW) batteries to mitigate thermal constraints. The batteries are expected to be operational by late 2021. Western Power seeks to lease the capacity of the batteries and gather evidence of a potential future model to address network needs.
Western Power is seeking suitable partner(s) to lease and operate the batteries, with the expectation that the partner will be able to seek benefits such as capacity credits, ESS, energy arbitrage & retail.
The batteries will be subject to operating parameters to ensure network benefits are realised; however Western Power will work with the operational partner to ensure value is maximised. Offers are anticipated to be baselined to unconstrained battery usage – understanding that limiting operating parameters will impact Western Power returns.
Submissions are due by 2pm (AWST) 20 September 2021.
The future opportunity
Western Power believes now is the correct time to deploy Distribution Storage as:
- It will maximise the utilisation of the network and ensure that optimal value is extracted from existing assets.
- It will play an important role in ensuring power system stability and security in an increasingly decentralised power system.
- The technology has matured leading to significant advancements in capability, efficiency and reduction in cost, providing an increasingly viable alternative to traditional investment options.
- It will facilitate further investment in renewable energy whilst assisting in maintaining a sustainable and affordable electricity supply.
- The network benefits have been proven - Western Power has already demonstrated the benefits in front of the meter storage can provide to the network through various trials on the SWIS.
- Recent development of advanced planning tools and scenario planning has shown via proof of concept demonstrations that correctly located distribution storage can be a no regrets investment during a time of significant change and uncertainty.
Western Power expects there to be growing opportunities for alternative services to access network values streams. The Distribution Storage Opportunities Information Paper (2020) indicates 100+MWh in the coming years. Distributed network storage is expected to play an integral role in this, with a growing fleet/s that not only provide value to the network, but to the broader energy market.
This project is the start of, what is expected to be, a larger program.
Distribution Storage Opportunities – information paper 2020; www.westernpower.com.au/media/4659/distribution-storage-plan-wp201211.pdf
Network purpose - network capacity & support through deferring/avoiding investment in network assets. In this case, supporting the evening peak, typically 4:30pm to 8:30pm from December to March.
The location - Waikiki (all 3 batteries)
The battery - Tesla MegaPack - https://www.tesla.com/en_au/megapack
Suppliers are required to provide the following information as part of the ROI registration process:
- A demonstrated track record and capability in delivering the solution in relation to the high-level Scope requirements stated above.
- References from at least three customers who have been offered similar services.
- Safety, Health & Environment information.
Please ensure the following details are included in your registration:
- Advertised event number: WS3107087921
- Commodity Code: Goods-Power Generation and Distribution Machinery and Accessories 26
Please REGISTER your interest on the link below by 2pm (AWST) 20 September 2021
Western Power will review and evaluate the registrations received against the scope requirements. Shortlisted registrants will be notified and may be invited to submit a Request for Proposal.
Western Power reserves the right to not proceed with any of the registration put forward as part of the process and provide the solutions internally by the network.
Please note that registering for the opportunity does not guarantee that you will be invited to participate in a market event or become a supplier of Western Power.