Mitsubishi Corporation has joined Australian company Lyon Solar in a joint venture that will take large scale solar + battery storage and network battery storage from the fringe to the centre of Australia’s electricity system.
The Lyon-Mitsubishi JV will drive large scale solar + battery projects with at least 1000MW of solar and 500MW of battery storage across Australia by 2020.
Speaking at the JV signing with the global head of Mitsubishi Corporation in Tokyo today, Lyon Solar Partner David Green said the JV would also build at least 500MW of network battery storage on Australian networks in the same period.
“Through this partnership with Mitsubishi, Lyon will add more than 1000MW of fast start, fast dispatch battery storage capacity to Australia’s electricity market by 2020.”
Mr Green said solar + battery addresses the number one issue facing the Australian energy sector – how to integrate an increasing proportion of renewable energy without destabilising the electricity network.
“Unleashing batteries into the system allows Australia’s transition to a clean electricity system to accelerate, without the power system stability challenges that come from intermittent-only renewables.
The deal brings together independent renewables developer Lyon Solar with Japan’s leading trading company Mitsubishi Corporation.
Lyon and Mitsubishi will roll out the Advancion energy storage platform developed by US-based AES Energy Storage, the world’s number one large-scale battery storage integration player.
“Through our JV with Mitsubishi Corporation, Lyon will add enough clean and reliable generation capacity to the energy market to safely allow for the decommissioning of some of Australia’s oldest, most polluting coal-fired power stations.”
“This new joint venture is a key step toward the moment when there will be no real limit to the amount of renewable projects that can be connected to the electricity grid in Australia.
Mr Green said that with the Paris Climate Agreement on track to come into force by the end of the year, battery storage will be crucial to achievement of the national carbon reduction targets that ratifying nations will then face.
“Hitting the Paris Climate Agreement targets will require new renewables at a magnitude and speed that will only be possible with batteries at large scale – we have to keep our electricity systems stable while we decarbonise.
Large scale batteries improve electricity network stability and reduce price volatility.
Mr Green said Australia is leading the world on the use of batteries in the electricity system and this opens an economic opportunity for the establishment of a local battery storage industry.
“A very exciting part of this deal is that what we are developing first in Australia will become our model for expansion across Asia, unlocking great potential for Australian industry and jobs.”
Earlier this month, Lyon Solar announced it would increase the size of its Kingfisher project at Roxby Downs in South Australia to 100MW solar + 100MW battery and that it would then build an 80MW solar + 20MW battery project in Queensland.
Mr Green said Mitsubishi Corporation would become a partner in Lyon’s existing solar + battery projects, which were the first of their kind anywhere in the world.
About Lyon Solar
Lyon Solar is a developer and principal investor in utility, commercial/industrial and residential scale solar and solar battery projects in Australia, Japan, Philippines, Thailand and India, and is soon to expand into Korea and Indonesia.
About Mitsubishi Corp.
Mitsubishi Corp. is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, living essentials, and environmental business. With over 200 offices and subsidiaries in approximately 90 countries worldwide and a network of over 600 group companies, Mitsubishi Corp. employs a multinational workforce of over 70,000 people.
About AES Energy Storage
AES is a leader in commercial energy storage solutions. AES manages installations from concept to operation with a market-proven solution that integrates best in class battery and power conversion technologies. AES introduced the first grid-scale advanced battery-based energy storage solution in commercial operations in 2008 and operates the largest fleet of battery-based storage assets in service today. AES has a total of 384 MW of interconnected energy storage, equivalent to 768 MW of flexible resource, in operation, construction or late stage development in six countries. AES is recognised independently as the global leader in large-scale energy storage systems.[1]
The AES Corporation is a Fortune 200 global power company. It provides energy in 17 countries and has a workforce of 18,500. It owns and manages $39 billion in total assets.
[1] https://www.navigantresearch.com/research/navigant-research-leaderboard-report-utility-scale-energy-storage-systems-integrators