Essential Energy has partnered with AGL Energy to install its first network battery, designed to help improve the reliability of the grid in the Sovereign Hills area of Port Macquarie, New South Wales.

The 2 MWh network battery will sit between houses in the region and is designed to absorb extra solar energy produced during the day, which will then be directed into the energy network at times when it is needed.

Connected to an 11 kV high voltage distribution wire on the Essential Energy network, this is expected to provide grid voltage regulation support, stabilise frequency and reduce demand on the network while reducing emissions.

AGL Chief Customer Officer Jo Egan said that AGL is proud to be supporting Essential Energy in trialling this technology to help ease congestion on the grid.

“AGL is pleased to support Essential Energy in this innovative network battery trial by constructing, commissioning and orchestrating the battery,” Ms Egan said.

“This is a first time AGL is partnering with an energy distributor to install a new grid-scale network battery. We will be sharing the insights with the network and supporting them to design and future proof the network as Australia transitions to a low-carbon future.”

“The network battery will also participate in AGL’s Virtual Power Plant, where customers join a network of connected distributed energy resources that support the electricity system when needed.”

The trial will help AGL better understand the role of network batteries in enabling greater renewable energy into the grid.

Essential Energy’s Chief Executive Officer, John Cleland, said “Our first grid-scale battery trial will provide learnings that will lead to further deployment of the technology across Essential Energy’s footprint, supporting the energy transition of regional, rural and remote NSW.”

“We’re proud to partner with AGL whose extensive technological capability enables us to proceed with these solutions under the regulatory framework and deliver effective network solutions to the local community.”

As announced in September last year, AGL is committed to rapidly decarbonising its business supporting the transition to a lower carbon world aligned with the Paris Agreement goals.¹ AGL’s Climate Transition Action Plan outlines AGL ambition to install 12 GW of new renewable and firming projects by 2036 and exit all coal fired generation by the end of June 2035.

¹Based on scenario modelling of the National Electricity Market (NEM) undertaken by ACIL utilising a carbon budget for the NEM which is consistent with limiting global temperature increases to well below two degrees Celsius above pre-industrial levels. The ability for AGL to execute on this target will be subject to uncertainties and risks further described on pages 25 and 26 of AGL’s Investor Presentation, including ongoing market and structural developments within Australia’s energy markets. AGL will continue to work with key stakeholders, including State and Federal governments, Action Plan outlines AGL ambition to install 12 GW of new renewable and firming projects by 2036 and exit all coal fired generation by the end of June 2035.