Origin Energy Selects Wärtsilä to Deliver One of Australia’s Energy Storage Projects

Wärtsilä has been selected by Origin Energy as the preferred contractor to deliver the first phase, 460 megawatts (MW) and 920 megawatt hours (MWh), of what will be one of Australia’s largest energy storage projects.

The Eraring battery will be installed at Origin’s Eraring Power Station. Origin may elect to expand the battery to 700 MW and 2,800 MWh in the future. The companies have signed an engineered equipment delivery (EEQ) contract with a total value of slightly more than 300 MEUR, Wärtsilä’s largest single energy storage deal to-date.

The order is expected to be booked latest in the third quarter (Q3) of 2023 and equipment delivery is expected to occur from October 2023 to September 2024.

The Eraring battery will be connected to Australia’s National Electricity Market (NEM) and support energy security and reliability in the state of New South Wales as the penetration of variable renewable energy supply increases.

“With significant solar and wind resources, Australia is in a unique position to rapidly decarbonise its energy sector. Flexible capacity, provided by energy storage projects like Origin’s Eraring battery or grid balancing engines, will be vital to achieving that as the share of renewables increases. The scale of this project positions Wärtsilä at the heart of that trend, delivering gigawatt-scale energy storage projects in each of our key markets around the world,” said Håkan Agnevall, President & CEO, Wärtsilä.

“Eraring is a strategic site with high quality connection infrastructure enabling us to deliver energy into major demand centres. Development of the Eraring battery is a key next step as we look to transform the Eraring site for the future, given our intention to exit coal-fired generation by as early as August 2025. We look forward to working with Wärtsilä and key contractors to deliver the Eraring battery safely and expeditiously,” said Greg Jarvis, Head of Energy Supply and Operations at Origin Energy.

Wärtsilä’s energy storage system (ESS) is designed with the potential to switch operation into grid-forming in the future, with the capability to supply a variety of system strength and system restart ancillary services.

This will deliver stability and resilience for NEM as a higher proportion of renewable energy sources penetrate the grid, helping to facilitate Australia’s clean energy transition.