Hitachi Energy awarded tender for Territory Generation’s Darwin-Katherine Battery Energy Storage System

Territory Generation is pleased to announce Hitachi Energy as the successful tenderer for our Darwin-Katherine Battery Energy Storage System (nicknamed the DK BESS) which will be built at our Channel Island Power Station.

The $45 million DK BESS is the first step towards reducing the use of gas generators for the Darwin-Katherine system. Once operational, the 35MVA DK BESS will be online continuously, replacing one gas-fired generating unit at Channel Island. Reduced operating and maintenance costs will deliver annual savings of around $9.8 million and carbon emissions of 58,000 tonnes.

The DK BESS will also further increase the stability and reliability of Darwin-Katherine’s power supply by quickly and efficiently managing fluctuations caused by solar energy. It will unlock further capacity for households to connect their rooftop PV or for industry to invest into lower cost solar systems for the commercial and industrial operations.

“Territory Generation is proud to be delivering on the Government’s Darwin-Katherine Electricity System Plan by installing the first of the region’s high specification security batteries,” said Territory Generation CEO, Gerhard Laubscher. “The Darwin-Katherine battery is a cornerstone of Territory Generation’s Fleet Transition. It is key to unlocking flexibility in our fleet to better manage the increasing impacts of solar on the system”.

Global technology leader Hitachi Energy, who has customers in the utility, industry and infrastructure sectors and a 30-year history in the Territory, was announced as the successful tenderer following a rigorous procurement process. “Together with the Northern Territory Government and Territory Generation, we are enabling the Territory to meet ambitious renewable energy targets, by harnessing abundant solar resources, and move towards a carbon-neutral energy future,” said Hitachi Energy in Australia, Country Managing Director, Bernard Norton.

Territory Generation carried out detailed modelling with key stakeholders to refine the specifications for the DK BESS, which has been revised from the original design. It offers increased storage capacity capable of delivering energy and services for longer. The DK BESS is expected to pay for itself in approximately five years.

Construction will commence in 2022 with the DK BESS expected to be operational in 2023. Ongoing jobs and further training opportunities will be provided with the establishment of the DK BESS, supporting 25 local jobs during the build.

13 December 2021

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The DK BESS will be located in the south-eastern area of Channel Island Power Station.