Wärtsilä selected as a preferred supplier for AGL Energy’s up to 1,000 MW grid-scale energy storage plans

AGL Energy LimitedSydney, one of Australia’s leading integrated energy companies, has selected Wärtsilä Oyj Abp, Helsinki, Finland, as one of the two suppliers for their up to 1,000 MW grid-scale energy storage plans. Wärtsilä has signed a non-exclusive five-year Large Scale Storage System Frame Agreement to supply energy storage projects in partnership with AGL. This agreement will reduce tender timeframes for individual projects, enabling faster project schedules and commercial operation. In addition to its state-of-the-art energy storage and energy management systems, Wärtsilä’s full engineering, procurement and construction (EPC) capabilities were among the reasons for AGL to choose Wärtsilä as an energy storage technology partner.

In 2020, AGL announced plans to develop energy storage installations near the Loy Yang A power station in Victoria (200 MW), Liddell power station (150 MW) and Broken Hill (50 MW) in New South Wales and Torrens Island (250 MW) in South Australia. The grid-scale energy storage plans will play a key role in Australian energy industry’s transition from traditional fossil fuels towards cleaner energy.

“We are investing in the highest standards for energy storage technology performance, reliability and safety. Therefore, we are looking for global leaders in energy storage technologies, such as Wärtsilä,” said Markus Brokhof, Chief Operating Officer, AGL Energy Limited. “We’re excited to see our grid-scale energy storage plans begin to come to life; we know energy storage technology is critical in creating a cleaner and smarter distributed energy infrastructure.”

“Australia is a country with unparalleled renewable energy resources and a unique opportunity to swiftly decarbonise and move towards renewable energy. Flexible capacity such as energy storage will be needed to balance renewables and keep the grid stable and reliable. AGL is a valued customer for Wärtsilä and we look forward to supporting AGL’s plans for critical firming capacity that will play a leading role in the energy transition from coal to renewables. Our smart technology helps to maintain system strength, network stability and energy security,” said Kari Punnonen, Director, Australasia, Wärtsilä Energy.

In 2018, AGL and Wärtsilä signed an EPC contract for the Barker Inlet Power Station (BIPS), a new power plant located on Torrens Island near Adelaide, Australia. The main role of BIPS is to ensure reliability in the renewable-heavy South Australian power system by providing balancing capacity to manage the variability from renewables. In addition to flexible engine power plants, such as BIPS, energy storage will play a key role in balancing renewables. Storage can take care of short duration balancing, whilst the flexible engine power plants can balance renewables for a longer duration.

Wärtsilä Energy in brief
Wärtsilä Energy leads the transition towards a 100% renewable energy future. We help our customers unlock the value of the energy transition by optimising their energy systems and future-proofing their assets. Our offering comprises flexible power plants, energy management systems, and storage, as well as lifecycle services that ensure increased efficiency and guaranteed performance. Wärtsilä has delivered 72 GW of power plant capacity in 180 countries around the world.

Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.



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