Lyon aims to beat Tesla battery storage with solar projects
In the wake of the selection of the Tesla/Neoen joint venture for 100 MW of renewable storage, Brisbane based company, Lyon Group, has clarified plans to build a potentially bigger battery system in the South Australian Riverland.
With construction scheduled to start in October this year, the 100 MW battery will be linked with a 330 MW solar farm at a total cost of around $1 billion.
Lyon has also announced plans for a $660 million solar and battery storage project at Nowingi, in Victoria, south of Mildura, due to commence construction in September, and another smaller project on Cape York in far north Queensland.
The Nowingi project will comprise 2.3 million solar panels generating up to 250 megawatts to charge an 80-megawatt/160 megawatt-hour battery system.
Lyon has set up a Storage Market Services Tender system, believed to be the first in the world, and has called for expressions of interest for contracts to cover up to 640MWh of storage capacity across Victoria, South Australia and Queensland based on the three projects.
Lyon Group Partner David Green said last month the projects are working through development consultation and approvals.
“The land has been secured, technology and other commercial arrangements are in place, and the required network capacity analysis and consultations are well advanced. Lyon’s projects are 100% equity financed,” he said.
“Projects like these are the heart of Australia’s energy transition, allowing for substantially higher levels of variable, low emissions generation, while strengthening the resilience of the system.” Mr Green said the recent Finkel report into the future of Australia’s electricity market shone a spotlight on large-scale battery storage and its central role in the evolving energy system.
“Lyon’s Battery Storage Market Services Tender is a reflection of the new energy world the Finkel Report describes. It is real and it is happening.” “Large-scale battery storage will be integral to meeting the Energy Security Obligations recommended by Dr Finkel.”
Lyon is backed by Mitsubishi Corporation and US investment funds Magnetar Capital and Blackstone.
More information about the utility scale battery storage market services tender is available here.