Post on 24-Apr-2022
PUMPED HYDRO ENERGY STORAGE
Paul Heithersay
Chief Executive
30 August 2018Source: Cleantech Concepts
• Energy – World Leading
• Copper – World Class, High Grade
• Iron Ore High Quality and in Demand
• Oil and Gas – Large Scale
The South Australian Opportunity
Copper in SA
Copper in SA
South Australian Copper Production
South Australia’s Lithospheric Architecture
Copper to the WorldAccelerate exploration, discovery and information
AusLAMP Magnetotellurics (30 km depth slice) and tenements in South Australia
(image from Kate Robertson, GSSA)AusLAMP Magnetotellurics (30 km depth slice) and copper occurrences in South Australia (image from Kate Robertson, GSSA)
Structural Shift in iron ore pricing
PRODUCT Fe% SiO2% AL2O3% S% P%
South Australia 66.5 – 70.0 1.8 – 3.36 0.2 – 1.9 0.002 – <0.01 0.005 – 0.009
Rest of Australia 64.5 – 65.0 6.6 – 8.15 0.16 – 0.25 0.004 – 0.03 0.02 – 0.026
Global producer
(Sweden)
67.90 0.75 0.16 0.002 0.025
Global producer
(Brazil)
67.75 1.40 0.55 0.007 0.035
PRODUCT Fe% SiO2% AL2O3% S% P%
South Australia 66.5 – 70.0 1.8 – 3.36 0.2 – 1.9 0.002 – <0.01 0.005 – 0.009
Rest of Australia 64.5 – 65.0 6.6 – 8.15 0.16 – 0.25 0.004 – 0.03 0.02 – 0.026
Global producer
(Sweden)
67.90 0.75 0.16 0.002 0.025
Global producer
(Brazil)
67.75 1.40 0.55 0.007 0.035
Indicative Magnetite Product Quality from South Australia
• South Australia energy mix is transitioning to low carbon energy supply.
• High penetration of intermittent renewable energy:
• 48% of total generation in 2016-17 forecast to rise to approximately 70% by 2020-21 (AEMO)
• Presents challenges for maintaining an affordable reliable and secure South Australian electricity system.
South Australian Energy Landscape
Changing Operational Demand
Source: AEMO Integrated System Plan
Large ramp to
evening peak
Low demand in
middle of day
Effect of growing rooftop solar
Increasingly Volatile Wholesale Prices
Source: Australian Energy Regulator
Low System Strength
Source: AEMO Integrated System Plan
Reducing inertia
Source: Alan Finkel et al – Independent Review into the Future Security of
the National Electricity Market, Preliminary Report, December 2016
• South Australian Government supports the transition to clean energy.
• The transition must be orderly and challenges must be managed.
• Will be achieved through the South Australian Government’s comprehensive energy policy.
• Major focus on storage, interconnection and demand response
Managing the Transition
• Informed by Acil Allen
• Consistent with Finkel Review
Key Initiatives
• $200m Interconnection Fund
• $100m Home Storage Subsidy Scheme
• $50m Grid Scale Storage Fund
• $20m Demand response and Demand Aggregation Trials
South Australian Government Energy Policy
AFFORDABLE, SECURE AND RELIABLE ENERGY SUPPLY
Grid Scale Storage Fund
“Objective – To facilitate the development of new storage technologies capable of addressing the
intermittency of South Australia’s electricity system”
• Dispatch into the South Australian Grid during
peak periods of demand
• Demonstrate a new or substantially improved technological
application in South Australia
• Contribute to improving the economics of storage
technologies in South Australia
Grid Scale Storage Fund call to market to
occur before end-2018
Linking Pumped Hydro Energy Storage With SA Govt. Energy Policy
Downward Pressure on Prices
• Reduces market volatility, increases competition / contract liquidity
• potential for deferral of network upgrades
Supports emission free, renewable deployment
• Smooths intermittency of renewables, reduces need for spare capacity from gas/diesel
• New load for surplus renewable generation
Improved reliability and security
• Provision of firm, dispatchable capacity
• Diversification from reliance on gas generation
• Inertia, spinning reserve, black start capabilities
PHES WELL
PLACED TO
MEET ENERGY
POLICY
OBJECTIVES
……..But faces competition from other
storage technologies each with their own
characteristics and usefulness
Gas Turbines Li-Ion Battery Flow Battery PHES
Average Size (MW) >100 1-20 1-20 >100
Typical Duration (hrs) N/A 2-4 4-6 >6
Round-Trip Efficiency N/A 85% 70% 70 – 85%
Emissions Emitting None None None
Lifecycles (cycles) >20,000 5,000 10,000 >20,000
CAPEX ($/kW) $1,000 $4,000 $5,000 >$2,500
CAPEX ($/kWh) N/A $400 $500 >$250
Operating Costs High (fuel costs) Medium (parasitic load) Low - Medium Low - Medium
Considerations • Emissions
• Natural gas infrastructure
required
• Challenging to permit
• Expensive at utility
scale and long
durations
• Limited cycles
• Expensive
• Unproven
• Limited cycles
• Capital intensive
• Siting limitations
• Challenging to permit
Source: AECOM, Bloomberg New Energy Finance
Pumped Hydro Energy Storage Historically Well Supported in SA
• $150 million Renewable Technology Fund announced during 2017.
• Objective - Accelerate deployment of projects that make renewable energy available on demand.
• $75m Grants / $75m loans
• Four Pumped Hydro Energy Storage projects awarded a total of $8.7m in grants for feasibility and pre-construction activities
Pumped Hydro Energy Storage Developments In South Australia
PUBLICLY
ANNOUNCED
PROPONENT CAPITAL
COST*
GENERATION /
STORAGE*
RTF SUPPORT
Goat Hill PHES Altura $420m 230MW / 1840MWh $4.7 million
Baroota PHES Rise
Renewables
$400m 270MW / 2160MWh $3 million
Middlebank Ranges
PHES
GFG
Alliance
$180m 110MW /660MWh $500,000
Cultana PHES EnergyAustralia $480m 225MW / 1770MWh $500,000
* Capital Cost/Generation/storage based on preliminary studies and liable to change
PUBLICLY
ANNOUNCED
PROPONENT CAPEX* GENERATION /
STORAGE*
Highbury PHES Tilt $380-$430m 300MW / 1350 MWh
Kanmantoo PHES Hillgrove $250m 220MW / 1300 MWh
RTF SUPPORTED – First commercial operations estimated 2H 2021 – 2H 2022
NON-RTF SUPPORTED - First commercial operations estimated 2H 2021
Proposed Pumped Hydro Energy Storage Locations
SUMMARY
1. South Australia has challenges transitioning to a low carbon energy supply.
2. SA Government has developed an energy policy to manage the transition that is consistent with Finkel Review approach.
3. The Finkel Review has highlighted the importance of Pumped Hydro Energy Storage (PHES) in the market.
4. The characteristics of PHES link well to Government energy policy objectives.
5. SA Government remains technology neutral and will assess each storage proposal on its merits.
6. PHES has previously been supported through the Renewable Technology Fund and future support may be available through Grid Scale Storage Fund.
Source: Rise Renewables Baroota PHES
Contact
Paul Heithersay, Chief Executive
Department for Energy and Mining
11 Waymouth StreetAdelaide, South Australia 5000
GPO Box 320
Adelaide, South Australia 5001
T: +61 8 8303 2299
E: paul.peithersay@sa.gov.au
DisclaimerThe information contained in this presentation has been compiled by the
Department for Energy and Mining (DEM) and originates from a variety of
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