Overview
To ensure NSW continues to have reliable energy supply as our coal-fired power stations close, the NSW Government is delivering the Waratah Super Battery project.
The Waratah Super Battery project is a System Integrity Protection Scheme (SIPS) designed to act as a 'shock absorber' in the event of any sudden power surges, including from bush fires or lightning strikes. The SIPS also provides a virtual transmission solution that increases the capacity of the existing transmission system, allowing electricity consumers in the Hunter, Sydney and Illawarra regions to access more energy from existing generators.
The Waratah Super Battery project is more than just a battery. It is comprised of four components:
- A SIPS service - provided by a battery energy storage system located at the former Munmorah coal-fired power station that is can provide a guaranteed continuous active power capacity of at least 700 MW and a guaranteed useable energy storage capacity of at least 1400 megawatt-hours
- Paired generation services - provided by a portfolio of generators across NSW that can provide technical services to support the SIPS
- A SIPS communications system - a software system and signalling equipment operated by Transgrid in its role as network operator. It will detect contingencies and faults across the network and rapidly signal paired generators to decrease output and the battery to discharge and supply power to consumers.
- Network augmentations - these works include updates to existing transmission lines and upgrading a series of substations required to increase the network’s capacity and allow for operation of the SIPS.
The Waratah Super Battery project is being delivered as a priority transmission infrastructure project under the Electricity Infrastructure Investment Act 2020 (the Act), and is the first such project to be delivered under this Act.
The project is expected to stimulate up to $1 billion in private investment into new energy storage and associated network augmentations, generate significant capital investment in the Hunter and Central Coast regions, and support over 100 jobs during construction.
Transgrid appointed as Network Operator
On 14 October 2022, the Minister for Energy appointed Transgrid as network operator and formally directed Transgrid to carry out the Waratah Super Battery project under the Act, published in the NSW Gazette here.
As Network Operator, Transgrid is coordinating the delivery of the project components described above and will be responsible for operating the SIPS once the project is operational.
Akaysha Energy appointed as SIPS Service Provider
EnergyCo in its role as infrastructure planner for the Waratah Super Battery project, appointed Akaysha Energy as the SIPS service provider following a competitive procurement process conducted throughout 2022.
Akaysha Energy is responsible for the construction of a battery energy storage system located at the former Munmorah coal-fired power station that can provide a guaranteed continuous active power capacity of at least 700 megawatts and a guaranteed useable energy storage capacity of at least 1400 megawatt-hours for the purposes of providing the SIPS service.
The physical size of the of battery is expected to be 850 megawatts / 1680 megawatt-hours which is understood to one of the largest committed battery projects in the world, both in terms of power and energy storage capacity. This oversizing of the battery allows for degradation of the battery over time to ensure security of supply. It also allows Akaysha Energy to utilise the excess capacity to tap into additional revenue streams, putting downward pressure on the cost of the SIPS service provided to NSW consumers.
Munmorah Site
The WSB project’s battery energy storage system will be on the site of the former Munmorah Power Station site at 301 Scenic Drive, Colongra (the Munmorah Site).
On 2 September 2022, the Minister for Planning declared the potential development of the WSB project on the Munmorah site as Critical State Significant Infrastructure, in recognition of the critical nature of the project to NSW’s energy security.
For more information about the Critical State Significant Infrastructure process, please refer to the NSW Government’s Department of Planning website.
EnergyCo prepared a comprehensive Environmental Impact Statement (EIS) which assessed the impacts of the WSB project on the environment and surrounding communities. As part of the preparation of the EIS, EnergyCo consulted with a range of stakeholders, including residents in the surrounding community.
The EIS was publicly exhibited between 11 November and 8 December 2022. Following the consultation period and after review of submissions, the NSW Government granted planning approval for the construction and operation of the Waratah Super Battery project on 23 February 2023. A copy of the Waratah Super Battery project EIS determination is available on the Department of Planning Housing and Infrastructure’s (DPHI) major projects website.
On 31 May 2023, Akaysha Energy began construction on the WSB project’s BESS. Construction is expected to be completed before August 2025.
Approved management plans and strategies
After planning approval was granted for the Waratah Super Battery, a number of management plans and strategies required under the approval have been approved by DPHI. The approved management plans and strategies can be viewed below (via DPE’s major projects website) or Akaysha Energy's website.
- Biodiversity Management Plan
- Approval of Biodiversity Management Plan
- Approval of Dilapidation Survey
- Traffic Management Plan Stage 1
- Approval of Traffic Management Plan Stage 1
- Environmental Management Strategy Approval
- Environmental Management Strategy
- Traffic Management Plan Stage 2
A portfolio of generators have been appointed to provide paired generation services to support the SIPS
For the project to operate safely, the SIPS service must be paired with generators to create a “virtual transmission line”. In the event of a network event, the SIPS control will issue a signal to discharge stored energy from the battery energy storage system into the network and simultaneously issue a signal for the paired generators to ramp down their power output, removing the potential for an overload on the transmission network, until the network event is resolved.
Regulatory
The WSB project is composed of two contestable components (a SIPS service and paired generation services) and a non-contestable component (network augmentations and SIPS control).
The Australian Energy Regulator (AER) in its role as Regulator under the Act, is required to make revenue determinations for each component of the Waratah Super Battery project.
Under the Act, the Scheme Financial Vehicle (SFV) must pay the network operator in accordance with the amounts set out in the AER’s revenue determination. The SFV recovers the cost of the NSW Electricity Infrastructure Roadmap from distribution network service providers who in turn recover those costs from NSW electricity consumers through network charges on their retail bills.
The following revenue determinations have been made and published by the AER:
- On 14 December 2022, a revenue determination was made for the SIPS Service (contestable) component of the Waratah Super Battery project. On 16 June 2023, the AER made an annual adjustment to the SIPS service determination. The determination can be accessed here.
- On 29 November 2023, a revenue determination was made for the contestable paired generation services component of the project. On 13 May 2024, the AER decided to review and remake the determination for the addition of a third paired generation provider. This determination can be accessed here.
- On 15 December 2023, a revenue determination was made for the non-contestable network augmentations and SIPS control system of the project. On 19 June 2024, the AER decided to review and remake the determination to include an additional adjust mechanism to update the return on equity. The determination can be accessed here.