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Plans have been lodged to build a 28-megawatt battery storage system at Mayfield West.
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The development application lodged with City of Newcastle by Precinct Capital and Edify Energy proposes to build the project on approximately 0.6 hectares inside the Steel River Estate
If approved it will be the first utility-scale battery storage system to be constructed within an existing industrial precinct.
Precinct Capital chairman, Bruce Baudinet said the system had been designed to charge and discharge directly from the grid, responding to electricity market signals and disturbances to ensure stability and reliability of the grid as renewable energy penetration increases in coming years.
"Deploying this battery in the heart of Newcastle's industrial precinct will help balance the power system for the city, keeping the lights on for industry and households throughout the region," he said.
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"The battery itself is about 2,500 square metres (about the size of 10 tennis courts) in size and includes climate-controlled energy storage enclosures and grid connection infrastructure."
The decision to build the battery followed research by Precinct Capital which pointed to a growing large-scale battery storage industry in Australia.
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As a landowner in the Steel River Estate Precinct Capital recognised the need for Australian industry and consumers to have reliable and cost-effective electricity, sourced predominately from renewable energy.
"We consulted with industry experts and quickly identified Edify as a market leader in this segment, and that the Steel River site was very suitable and strategically located. Edify is among a select few local companies that have successfully brought a large-scale battery to market, so we formed a partnership focused on delivering a fantastic and innovative project for the Hunter Region," Mr Baudinet said.
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Edify Chief Executive John Cole said the project would bring benefits to the wider region.
"The project will act like a shock absorber within the electrical network, absorbing electricity from the grid when generation exceeds demand and export electricity to the grid at times of lower generation including during intermittent solar and wind resource," Mr Cole said.
If approved construction and commissioning should be completed in six to eight months and provide between 20 and 30 direct jobs during the construction period.
Newcastle Lord Mayor Nuatali Nelmes said the city is very supportive of renewable and energy efficiency projects and working collaboratively with other progressive organisations.
"Newcastle is a smart, sustainable and liveable global city supporting investment in next generation technologies to address the challenges of climate change and is a great place for future-focused industries to be established," Cr Nelmes said.
"This joint project provides benefits to the local area and wider community, including alignment with City of Newcastle's objectives as outlined in the Climate Action Plan through firming renewable energy supply, along with building resilience in the local Newcastle electricity network through a megawatt scale battery storage."