The Australian Renewable Energy Agency (ARENA) has announced that, on behalf of the Australian Government, it will provide $5 million in funding to Infigen to install a 25MW/52MWh Tesla battery at the Lake Bonney Wind Farm in South Australia.

The $38 million project is also supported by the South Australian Government with a $5 million grant under its Renewable Technology Fund.

The grid-scale battery will be built adjacent to Infigen’s existing 278.5MW wind farm.

Infigen will build and operate the facility which will be connected to the grid via the Mayurra substation, near Mount Gambier in the state’s south east.

The battery will deliver flexible capacity and system security services, such as Frequency Control Ancillary Services (FCAS), to the electricity grid in South Australia.

ARENA Chief Executive Officer, Ivor Frischknecht, said battery storage was increasingly becoming a key component of transitioning to an energy system powered by renewables.

“It is clear that grid scale batteries have an important role in stabilising the grid,” he said.

ARENA has previously contributed $12 million towards the $30 million 30MW ESCRI battery soon to be commissioned at Dalrymple South Australia. ARENA has also committed $25 million to two grid scale batteries currently under construction in western Victoria.

“The co-location of a battery with a wind farm provides an opportunity for Infigen to pursue regulatory changes that could improve revenue outcomes for grid-scale batteries, helping to becoming more competitive,” Mr Frischknecht said.

Infigen Chief Executive Officer, Ross Rolfe, said, “Infigen’s strategy is to participate in growth opportunities in the NEM. We are delighted to be able to work with a global technology leader Tesla, ARENA and the South Australian Government to contribute to improved energy security for South Australian energy consumers.”