Technology group Wärtsilä has been contracted by EnergyAustralia to deliver 350 MW / 1474 MWh of capacity to the Wooreen Energy Storage System in Victoria, Australia. This pivotal project is set to enhance Australia’s infrastructure by providing essential grid stability and supporting the integration of renewable energy, aligning with the country’s ambitious decarbonisation goals. The scope of the contract includes engineering design, supply, commissioning, and a 15-year service agreement. The deal was booked in Q4, 2024.

The project was successful in the first round of the Capacity Investment Scheme (CIS), an Australian Government initiative to encourage new investment seeking to deliver 32 GW of renewable generation and dispatchable capacity by 2030. The site will be built adjacent to EnergyAustralia’s Jeeralang Power Station and become operational before the shut-down of the coal-fired Yallourn Power Station planned to retire in 2028. Construction will begin in 2025 and the WESS will be completed in 2027. Once operational, the system will provide energy to more than 230,000 homes for up to four hours at a time.

Recently, spot prices have surged due to colder weather, increased energy demand, and reduced renewable generation. This volatility in the energy market poses challenges for both consumers and providers. The energy storage project will provide EnergyAustralia with a natural hedge against such market fluctuations and help stabilise energy prices and ensure a more resilient energy supply.

“At EnergyAustralia, our purpose is to lead and accelerate the clean energy transformation for all,” said EnergyAustralia Managing Director, Mark Collette. “The Wooreen Energy Storage System is the largest single project investment made by EnergyAustralia. Wooreen will provide capacity to meet demand peaks while enabling more renewable energy to enter the electricity market, contributing to better customer energy outcomes.”

“This project is a landmark step for EnergyAustralia as they continue to decarbonise their asset portfolio while maintaining reliability for their customers,” said Andrew Tang, Vice President of Energy Storage & Optimisation at Wärtsilä Energy. “We are excited to partner on this significant project and help support their long-term energy goals. This project is Wärtsilä’s first in the state of Victoria and expands our footprint in Australia to 4.8 GWh across seven projects. Australia has already made great strides towards its decarbonisation targets, and this project will further boost its renewable energy capacity.”

The Wooreen energy storage system will utilise Wärtsilä’s Quantum High Energy technology and GEMS Digital Energy Platform, helping to secure Victoria’s energy supply and enabling more renewable energy to enter the electricity network while providing crucial grid services. The project is designed to switch to grid-forming mode, offering operational flexibility with faster response times to increase system stability and grid reliability while keeping energy prices low for consumers.

Today, Friday 28^th of February, Wärtsilä representatives joined EnergyAustralia, Victorian Energy Minister, Lily D’Ambrosio, and other members of the Victorian Government at the Wooreen commencement ceremony.