The Water Corporation has confirmed it will defer development of battery storage facilities, after an Infrastructure WA report highlighted risks attached to its plan.
The Water Corporation has confirmed it will defer development of battery storage facilities, after an Infrastructure WA report highlighted risks attached to its plan.
A business case for the planned $255 million spend on battery storage proposed facilities to be built at three sites near Mandurah, with a further three to be determined based on learnings from the initial rollout.
However, the organisation made the decision to defer a move into the battery space after IWA highlighted a series of risks with the business case.
“As an early adopter the proposal has some inherent risk given whole of government coordination and strategies are still developing, and that WC’s primary business is in water and not energy,” the IWA assessment said.
The major project assessment body said ongoing engagement with Synergy and Western Power would be necessary should the project go ahead, to guarantee coordination between the bodies.
It also suggested a risk of cost blowouts.
“There is also possible cost escalation and deliverability risk exposure, particularly given current market conditions and global activity in comparable energy transition projects,” IWA said.
“These issues will need further consideration and management during the next stages of planning and ultimately delivery should the project proceed.”
IWA said the proposal had insufficient information to inform a government decision based on whole-of-state costs and benefits.
But Water Corp has since confirmed it will defer plans to develop battery storage at this stage.
“Water Corporation remains focused on procuring sufficient energy storage and generation to meet its requirements and is continuing to work closely with various arms of government to support the collective approach to decarbonisation,” a spokesperson told Business News.
“While Water Corporation has deferred plans for battery storage at key sites, on-site storage is just one measure Water Corporation is exploring to ensure lowest-cost operational continuity during the transition to renewables, while helping meet its target of net-zero greenhouse gas emissions by 2035 and supporting whole-of-government decarbonisation efforts.”
The business case flagged renewables as Water Corp’s preferred means of electricity generation, with around 60 per cent of its energy needs currently supplied by coal.
The Water Corp flagged energy generation as a strategic shift late last year when it purchased the development rights to stage two of the Flat Rocks wind near Kojonup.
The project was included as part of the state’s $2.8 billion commitment to green energy in May’s state budget.
