BESS Insights: Key Takeaways from All Energy Australia

As we reflect on the insightful discussions and innovations presented at the conference, Darrell Taylor shares his perspective on the rapid evolution of energy storage, highlighting in our latest blog that BESS is becoming an essential component in optimising the utilisation of renewable energy.

A Shift in Focus: Battery Energy Storage Systems (BESS)

One of the most surprising aspects of this year’s event was the uplift in BESS as opposed to Solar. Unlike previous years, where solar panels and solar farms dominated the discussions, there was a significant focus on Battery Energy Storage Systems (BESS) with this trend applicable to both utility-scale and commercial & industrial (C&I) sectors. It seems that BESS is becoming a crucial component in better utilizing renewable energy.

Global Growth in BESS Production

The global BESS market is experiencing rapid growth. In 2024 alone, the sector is set for a record-breaking year with an anticipated increase of over 130 gigawatt-hours (GWh) of added capacity, bringing the total global operational BESS capacity to more than 330 GWh. This growth is driven by decreasing costs and increasing demand for energy storage solutions and supply and distribution issues focussed upon timing.

New Zealand’s Journey

While New Zealand still has some way to go before BESS becomes as prevalent, it was clear that most new Utility-Scale Solar (USS) projects are now considering additional battery storage. Many projects are adding a consent for a BESS into their applications if not including from the beginning. There is also a notable increase in standalone BESS projects underway, such as Contact Energy’s project in Waikuku and Genesis Energy’s project in Huntly. This represents significant growth in the sector.

High Power Prices and Grid Instability in New Zealand

New Zealand has been facing challenges with high power prices and grid instability. In 2024, wholesale electricity prices spiked from roughly $300/MWh to over $800/MWh due to a combination of low hydro storage, high gas prices, and low wind generation. This volatility underscores the importance of integrating more BESS to stabilize the grid and manage energy supply more effectively.

Industry discussions

The seminars were another highlight of the event. I attended several well-run sessions that delved into topics like electrification and the proposed changes by the Australian National Construction Code (NCC). These changes include a raft of changes but some highlights that surprised me were :

– No gas in new residential build, and new power outlets to any external carport or park for future charger installation

– Requirements for electric vehicle chargers as a percentage of new car parks in commercial buildings

These proposed changes aim to support the transition to a net-zero future and enhance building energy efficiency.

The Push for Electrification

We also learned about the journey towards electrification for many companies, driven strongly by legislation. For instance, there is a push for no new internal combustion engine (ICE) buses, with a mandate for only electric buses from 2030. This legislative push is a significant step towards reducing emissions and promoting sustainable public transport. Even looking at efficiency of current building services like hot water where they are traditionally oversized to meet demand. Electrifying this requires more auditing and analysis before proposing better fit for purpose electrified solutions; these all need to be holistic in there approach.

Industry Collaboration and Networking

It was also nice to see McKay’s recent project at Ruakaka, the 100MW/ 200MWh BESS for Meridian, showcased on the Saft stand. This project exemplifies the real industry collaboration that was quite prevalent at the event. McKay was well received when talking to other industry players as we are in a unique position to help with early and detailed design right through to construction and maintenance. Having this set of skills was viewed positively in our discussions, as it provide for better construction outcomes. We enjoyed meeting these new connections and companies in Australia; and reconnecting with many of our New Zealand industry partners. Whether it was over breakfast, at a food court, or in a very New Zealand way—just sitting on the stairs in the sun discussing business—it was a fantastic opportunity to network and share insights.

Building the Grid for the Future

There is a saying in New Zealand that to support electrification, we need to build the national and local electricity grid in 10 years what it took 50 years to do previously. This highlights the urgency and scale of the infrastructure development required to meet future energy demands and support the transition to renewable energy.

Overall, All-Energy 2024 was a fantastic opportunity to learn about the latest trends and innovations in the renewable energy sector. I look forward to seeing how these developments will shape the future of energy use in New Zealand.