Canberra backs Li battery projects in Western Australia

: Battery materials, Electricity, Metals
25/03/20

Australia's federal government will partly underwrite four lithium-ion battery projects in Western Australia (WA), boosting the state's energy storage capacity by 2.6GWh from late 2027.

Canberra is supporting the projects through its Capacity Investment Scheme (CIS), which sets a revenue floor on big battery projects for up to 15 years. The government has not revealed the specific revenue floors linked to the newly underwritten projects.

Australian renewable energy developer PGS Energy will build the largest of the four newly-underwritten batteries, a 1.2GWh energy storage system in Marradong. The company's Marradong battery will be co-located with a solar farm and connected to WA's South West Interconnected System (Swis), a grid stretching across its most populous regions, once it becomes operational.

French energy producer Neoen is also developing a 615MWh project just outside Perth, under the scheme. The company has been building large batteries across Australia, with public support, for multiple years. Its Collie Battery Energy Storage System is connected to Swis, and has been storing and discharging 877MWh of energy since October 2024.

The two other batteries underwritten on 20 March are smaller, with a combined capacity of 780MWh, and located in rural parts of the state.

The Australian government's latest funding announcement comes just months after it on 11 December 2024 underwrote eight other Australian battery projects capable of storing 3.6GWh of power under the CIS. Those projects were scattered across the country, covering three states but excluding WA.

Canberra will also underwrite another set of batteries, with a combined capacity of 16GWh, in September. Over 100 projects, with a combined capacity of 135GWh, have applied to be part of CIS' September funding round.

By Avinash Govind

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/04/30

Nemos commit to 15-minute settlement in power SDAC

London, 30 April (Argus) — Eleven nominated electricity market operators (Nemos) have confirmed their "readiness and commitment" to proceed with a 15-minute settlement in the single day-ahead coupling (SDAC) market on 11 June, according to a statement given to Argus . The co-signing Nemos — Oslo-based Nord Pool, Czech OTE, Austrian EXAA, Greek Enex, Italy's GME, Spain's Omie, Bulgarian Ibex, Poland's TGE, Slovakian Okte, Croatia's Cropex and Romanian BRM — confirmed that they "do not share the misgivings" about the 15-minute settlement transition expressed by European power exchange Epex Spot earlier this month , the Nemos told Argus . Nord Pool previously told Argus on 17 April that it was "confident and ready" to deliver 15-minute trading. The market operators do "not recognise" the problems cited by Epex and are sure that the "necessary infrastructure and processes" are in place to implement the move on time successfully. Instead, the co-signed Nemos stressed that the transition is a "pivotal advancement" and any delay risks "hinder[ing] progress" towards a better-integrated market. Specifically, the signatories clarified that the decoupling registered in some tests and cited by Epex Spot was not "due to a lack of reliability" in the system. Instead, they attributed this to "internal local testing issues of certain parties in the initial [testing] stage". The Nemos added that all performance tests of the central matching algorithm (Euphemia) were "successfully completed and validated by all parties, including Epex Spot". The co-signed Nemos noted that most test scenarios, "both functional and procedural", were "successfully completed and validated", adding that any reference to the implicit intraday auction (IDA) decoupling scenario is "misleading and inappropriate" as these were "caused by local issues" and the "time allocated to IDA executions" is less than 25pc of the "overall time available for SDAC". By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ArcelorMittal steel output, sales rise in Brazil

25/04/30

ArcelorMittal steel output, sales rise in Brazil

Sao Paulo, 30 April (Argus) — Global miner and steelmaker ArcelorMittal increased its steel output in Brazil to 15mn metric tonnes (t) in 2024, up by 3.8pc from a year before. The company credited the performance increase to the expansion of its Vega unit in Santa Catarina state, which bumped cold-rolled steel production to 2.2mn t/yr from 1.6mn t/yr. ArcelorMittal Brazil is building a new rolling mill in Barra Mansa, in Rio de Janeiro, at a cost of R1.6bn ($284mn) but no production forecast has been disclosed. The producer's Brazil sales climbed to 15.1mn t in 2024, rising 5.2pc year over year, despite record steel imports into Brazil . The company attributed the sales uptick to rising domestic steel demand but noted that falling prices and import competition limited profits. ArcelorMittal Brazil's profit declined 4.7pc to R66bn last year from the previous year. The company will release its global first-quarter 2025 results on 30 April. By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US economy contracts in 1Q on pre-tariff stocking

25/04/30

US economy contracts in 1Q on pre-tariff stocking

Houston, 30 April (Argus) — The US economy contracted in the first quarter for the first time in three years, on less government spending and a surge in imports as companies stocked up on inventories before tariffs take effect. Gross domestic product (GDP) contracted at an annual 0.3pc pace following growth of 2.4pc in the fourth quarter, the Bureau of Economic Analysis said today. GDP last fell by 1pc in the first quarter of 2022. Economists surveyed by Trading Economics had forecast 0.3pc GDP growth for the first quarter. Businesses stocked up on imports to get ahead of tariffs that President Donald Trump has wielded to restructure the global trading system. A monthly employment report in two days may show the impacts of Trump's mass federal firings, while Federal Reserve policymakers will meet next week to consider the effects of Trump's policies on prices. Imports, which detract from GDP growth, expanded by 41.3pc after falling by 1.9pc in the fourth quarter. Exports grew by 1.8pc after declining by 0.2pc. Consumer spending rose by an annual 1.8pc in the first quarter following 4pc growth in the fourth quarter. Domestic investment, which includes inventory builds, rose by an annual 21.9pc following a decline of 5.6pc in the prior quarter. Spending on equipment rose by 22.5pc following an 8.7pc decline in the fourth quarter. Government spending fell by 1.4pc after growth of 3.1pc. Federal spending fell by 5.1pc after growth of 4pc. Defense spending was down by an annual 8pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France to review role of renewables in energy plan

25/04/30

France to review role of renewables in energy plan

London, 30 April (Argus) — The French government will delay the publication of its 10-year energy plan (PPE), and could change its content to take into account criticism that it gives too much priority to renewables, after a debate in the French parliament earlier this week. Prime minister Francois Bayrou on 28 April held a parliamentary debate on the much-delayed plan, which was initially due to come out in 2023. Publication appeared imminent last month, but revolts in the parliament — in which the prime minister does not have a majority — have forced the government to reconsider. The government will take its decisions "in some months", Bayrou told the parliament. "This PPE is not written in advance and everyone will be able to contribute before the final version," he said, opening the door to a rewrite of the plan, which committed to large increases in wind and solar photovoltaic capacity. A commission will deliver a report at the end of May, to be followed by a parliamentary debate on a version of the plan authored by senator Daniel Gremillet in June. The government's support for renewable energy will be "reasoned", he said, suggesting there could be a scaling back of wind and solar ambition. Bayrou highlighted the problems of solar energy, including that its peak output does not correspond to peak demand periods. To solve this problem, France must make its demand more flexible — including through the upcoming reform of tariffs, which will offer lower prices to some customers in the middle of the day — and through developing storage, he said. But the question of cost remains. Roof-mounted installations in France — the sector which has advanced the fastest over the past year — produce at a cost of €100/MWh, he said, compared with €40/MWh at large ground-mounted plants in Spain. But the public acceptability of covering large areas of countryside with low-cost solar farms remains a question, he said. And the development of onshore wind must be "reasonable", as public acceptability of the technology diminishes as the number of installations increase, Bayrou said. France must focus on repowering existing sites, he added. And the government firmly supports extending the lifespan of existing nuclear plants, and building at least six more reactors to enter service from 2038, Bayrou said. Right-wing Rassemblement National (RN) called for an increase in nuclear ambition, demanding the construction of 10GW of new nuclear by 2035, upratings at existing reactors and increasing the load factor of the fleet to 80pc. This would put France on the road to increasing its energy mix to 60pc low carbon by then, up from 37pc now, RN deputy Maxime Amblard said. But this would be accompanied by a moratorium on intermittent renewables, especially on wind farms, he said. The centre-left socialists called for the publication of the PPE as is, while left-wing LFI and green parties criticised what they characterised as a lack of ambition on emissions reduction and too heavy a reliance on nuclear. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia secures $60mn JETP funding for solar power

25/04/30

Indonesia secures $60mn JETP funding for solar power

Singapore, 30 April (Argus) — State-owned PLN Indonesia Power (PLN IP) and Saudi-listed Acwa Power will receive $60mn in funding from the Just Energy Transition Partnership (JETP) to develop a solar project in Indonesia, indicating there is still interest in financing the country's energy transition. The 92MW peak (MWp) Saguling floating solar project in west Java will receive the funds from German development finance institution DEG, French development finance institution Proparco and Standard Chartered bank, announced the Glasgow Financial Alliance for Net Zero (GFANZ) on 29 April. PLN IP and Acwa Power signed a power purchase agreement in August 2024 to jointly develop the solar project. The $60mn for the project is in addition to $1.2bn which Indonesia has already secured under the JETP. Indonesia joined the JETP in 2022 and is supposed to receive $20bn through the scheme from international partners including GFANZ, to help its coal phase-out. US president Donald Trump's decision to withdraw the US from the JETP raised concerns earlier in 2025 on whether Indonesia could stick to its energy transition policies. But the US' withdrawal may not necessarily have a major impact on JETP funding. The latest investment "points to appetite from both public and private sectors to finance the country's green energy transition," said GFANZ. France has already mobilised over €450mn ($511mn) for Indonesia's energy transition through the JETP, according to the ambassador of France to Indonesia, Fabien Penone. PLN IP, a sub-holding of state-owned electricity company PLN Persero, is the largest power generation company in southeast Asia. Indonesia's electricity demand is expected to grow by about 3.8pc/yr to 1,813TWh/yr by 2060, but its power sector is still heavily reliant on coal, which made up 61.8pc of the electricity mix in 2023. In comparison, renewables made up 19pc, out of which solar and wind power constituted a mere 0.2pc. Indonesia has large solar potential of up to 3,295GW, said PLN IP's president director Edwin Nugraha Putra. The Saguling solar project, which is expected to reduce carbon emissions in Indonesia's power system by at least 63,100 t/yr, will also increase the share of solar in Indonesia's electricity production by around 13pc, according to GFANZ. The share of renewables in Indonesia's power mix is expected to rise to around 21pc by 2030 and 41pc by 2040, according to think-tank Ember. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more