‘You need to be co-located with battery storage’: Wärtsilä sees DC-coupling as essential for Australia’s solar future – Energy-Storage.News

Report on Advanced Energy Storage and its Contribution to Sustainable Development Goals in Australia

1.0 Introduction: Accelerating SDG 7 through Hybrid Energy Systems

The rapid scaling of utility-scale, DC-coupled solar and battery hybrid projects in Australia marks a significant step towards achieving Sustainable Development Goal 7 (Affordable and Clean Energy). The integration of these technologies is critical for enhancing the efficiency and reliability of the national power grid as it transitions away from fossil fuels, directly supporting SDG 13 (Climate Action). This report analyses the role of DC-coupled systems in addressing market challenges, the technological innovations driving their adoption, and future opportunities for expanding sustainable energy infrastructure.

2.0 Addressing Market Inefficiencies to Enhance Clean Energy Viability

The co-location of solar generation and battery energy storage systems (BESS) provides a strategic solution to prevalent market challenges, thereby strengthening the economic case for renewable energy and contributing to SDG 7 and SDG 11 (Sustainable Cities and Communities).

2.1 Mitigating Solar Curtailment and Negative Pricing

Recent market dynamics in Australia’s National Electricity Market (NEM) highlight the urgency for integrated storage solutions.

• Solar Curtailment: Research by the Australian Energy Market Operator (AEMO) indicates that in the previous year, several utility-scale solar PV plants experienced curtailment rates exceeding 25%. DC-coupled BESS allows for the capture and storage of this excess solar energy that would otherwise be wasted.
• Negative Pricing: Australia is a global leader in the frequency of negative wholesale electricity prices. In the last year, negative pricing occurred for significant periods in key states:
  1. Victoria: 24% of the time
  2. South Australia: 26% of the time
• Revenue Opportunities: Integrated batteries enable operators to store energy during periods of negative pricing and discharge it during periods of high demand, creating a viable revenue model and improving the financial sustainability of clean energy projects.

3.0 Technological Innovation for Sustainable Infrastructure (SDG 9)

The deployment of DC-coupled hybrid systems relies on concurrent advancements in component technology and sophisticated control systems, reflecting a commitment to SDG 9 (Industry, Innovation, and Infrastructure).

3.1 The Critical Role of DC-to-DC Converters

DC-to-DC converters are a cornerstone of DC-coupled systems, enabling efficient energy management and system integration.

• Core Functionality: Converters manage voltage differences between solar arrays and battery systems through buck-boost capabilities, ensuring seamless power transfer.
• Technological Maturity: The evolution of converter technology, alongside reductions in lithium-ion battery costs, has made these integrated systems more cost-effective and reliable.
• Strategic Partnerships: Technology providers leverage field experience from established markets, such as California, to deploy proven and de-risked converter solutions in Australia.

3.2 System Control and Grid Interaction

Sophisticated control systems are essential for optimising the performance of hybrid plants and ensuring they contribute effectively to grid stability, a key component of resilient infrastructure under SDG 9.

• Grid Interface: The interaction with the NEM remains unchanged from standalone configurations, as the inverter serves as the primary interface between the BESS and the grid.
• Internal Coordination: The primary advantage of DC-coupling lies in the streamlined coordination between the solar and battery components, managed by advanced control systems that respond to both solar performance and market signals.
• Pioneering Technology: Australia is also a proving ground for grid-forming battery storage, a technology where the nation is a global leader, further demonstrating its role in pioneering solutions that support the global energy transition.

4.0 Market Expansion and Future Outlook for Climate Action (SDG 13)

The successful deployment of DC-coupled systems is creating a template for broader technology adoption, supporting Australia’s long-term climate goals and the decommissioning of coal-fired power plants.

4.1 Opportunities in Western Australia

The Wholesale Electricity Market (WEM) in Western Australia presents a significant opportunity for the expansion of DC-coupled projects. As developers gain confidence in the technology, its adoption is expected to accelerate, requiring an early commitment to co-located storage during the project planning phase.

4.2 A Focus on Usable Energy and System Efficiency

To maximise the contribution of BESS to climate and energy goals, the evaluation of projects must focus on total usable energy output.

• Key Metrics: The primary metric for success should be the total energy output achievable from the system, which encompasses battery capacity, system efficiencies, and control capacity.
• Relevance to DC-Coupling: This focus is particularly relevant for DC-coupled solutions, where improved efficiency is a primary advantage, directly supporting solar integration and enhancing grid reliability in line with SDG 7 and SDG 13.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
   • The article focuses extensively on renewable energy, specifically solar power and its integration with battery storage systems. It discusses technologies like DC-coupled hybrids to improve the efficiency and usability of solar energy, which is central to providing clean energy. The challenges of solar curtailment and negative pricing are presented as obstacles to a stable and efficient clean energy supply, which energy storage solutions aim to solve.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The text highlights technological innovation in the energy sector, such as the development and deployment of DC-to-DC converters, DC-coupled solar-battery hybrids, and grid-forming battery storage. It describes the scaling of these technologies from initial projects to utility-scale deployments, representing an upgrade to energy infrastructure to make it more resilient, efficient, and capable of handling renewable energy sources.
3. SDG 13: Climate Action
   • The underlying theme of the article is the transition away from fossil fuels towards a renewable-based energy system. By discussing solutions to make solar power more reliable and efficient, the article addresses a key strategy for reducing greenhouse gas emissions. The mention of decommissioning coal-fired power plants in favor of renewable systems with integrated storage directly links the technological advancements to broader climate action goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article’s entire focus is on making solar energy more effective by co-locating it with battery storage. This directly supports increasing the usable share of renewables by tackling issues like curtailment, where excess solar energy is wasted.
   • Target 7.a: “By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.” The article mentions that Wärtsilä “leverages partnerships with technology providers who have field experience in other markets, particularly in California,” which is a clear example of international cooperation to bring proven clean energy technology to the Australian market.
2. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies…” The deployment of advanced energy storage technologies like DC-coupled systems and grid-forming batteries represents a significant upgrade to the energy infrastructure. The article states that DC coupling is “incredibly efficient and streamlined,” directly addressing the goal of increased efficiency and adoption of clean technologies.
3. Under SDG 13 (Climate Action):
   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The article describes Australia’s energy transition, where “coal-fired power plants are decommissioned in favour of renewable energy systems with integrated storage.” This reflects a national-level strategy to shift the energy market away from fossil fuels, thereby integrating climate change mitigation measures into energy planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 7 Targets:
   • Rate of Solar Curtailment: The article explicitly states that “several utility-scale solar PV power plants experienced curtailment of above 25%.” A reduction in this percentage would be a direct indicator of progress in making renewable energy more usable (Target 7.2).
   • Frequency of Negative Pricing: The article notes that in Victoria and South Australia, “negative pricing was experienced for 24% and 26% of last year.” A decrease in the frequency of these events, achieved by storing excess solar power, would indicate a more stable and efficient renewable energy market (Target 7.2).
   • Usable Energy Output: The article suggests that a key metric for evaluating storage projects should be “usable energy and the total energy output that can be achieved from the system.” This directly measures the effective contribution of renewable energy systems (Target 7.2).
2. For SDG 9 Targets:
   • Deployment of Advanced Storage Systems: The article mentions the “rapid scaling” of projects like the “128MWh Fulham Solar Battery Hybrid project to utility-scale deployments.” The number and total capacity (in MWh or GWh) of co-located and grid-forming battery systems deployed would be a clear indicator of infrastructure upgrades (Target 9.4).
3. For SDG 13 Targets:
   • Rate of Coal Plant Decommissioning: The article mentions that “coal-fired power plants are decommissioned.” The rate at which these plants are taken offline and replaced by renewables is a tangible indicator of progress in integrating climate action into national strategy (Target 13.2).

4. Summary Table of SDGs, Targets, and Indicators

Source: energy-storage.news