[SMM Analysis] The first 2000MWh energy storage system in Western Australia has installed its initial units, marking a significant milestone

In Western Australia, the first 2,000MWh energy storage system has installed its initial units, marking a significant milestone. This system, located in Collie and managed by Synergy, will provide 500MW of power and 2,000MWh of storage capacity. Once completed, it will be able to supply four hours of power to 785,000 average households, making it one of the largest battery systems in Australia. The first phase of the project includes 80 units already in place, and the entire system will comprise 640 units. The construction of the Collie battery is creating approximately 500 jobs, providing a significant boost to the local economy.

This energy storage system is expected to connect to the power grid in 2025. It will work alongside Synergy's existing battery system in Kwinana to absorb excess solar and wind energy during the day, providing system stability and supporting the continued growth of renewable energy in the South West Interconnected System (SWIS). The Western Australian government has already invested 5.4 billion yuan in the energy transition as part of its plan to provide clean, affordable, and reliable energy through new generation, storage, and statewide transmission infrastructure.

Additionally, the Western Australian government plans to build another larger energy storage system in Kwinana, expected to be operational by the end of 2024, providing 200MW of power and 800MWh of storage capacity. The construction of these large-scale energy storage systems is a key step for the Western Australian government to achieve its goal of net-zero emissions by 2050.

In terms of energy transition, the Western Australian government has developed a comprehensive energy transition strategy aimed at reducing the emission intensity of major industries through significant infrastructure investments, providing industrial leasing incentives, supporting industry, workforce skill development, and sectoral emission reduction strategies. This strategy highlights Western Australia's opportunities in the clean energy transition to support global economic decarbonization. Western Australia has abundant renewable energy resources, critical minerals, and rare earth reserves, as well as the innovative capability to develop green energy solutions and products by a highly skilled local workforce, enabling Western Australia to play a leading role in the global supply chain and position itself as an energy hub in the Indo-Pacific region.

The Collie Battery Energy Storage System (CBESS) is part of the Western Australian government's decarbonization strategy to be achieved by 2030. This project is part of Synergy's decarbonization strategy, which will replace coal-fired power generation with renewable energy generation infrastructure and energy storage solutions. CBESS is expected to provide 64% of the new storage capacity announced under this plan.

Meanwhile, to support Western Australia's energy transition, the state's Wholesale Electricity Market (WEM) has begun operating new capacities developed to support the state's energy transition. These reforms have modernized Western Australia's power system and laid the foundation for it to operate at increasing levels of renewable energy while providing consumers with safe, reliable, and affordable energy.