AGL Energy (AGL) has teamed up with energy storage and management company Sunverge to plan what they propose to be the world’s largest battery storage virtual power plant (VPP).

The project will feature a network of rooftop solar and batteries, in South Australia and will cost in the region of AUD$0m ($15m). The project is aimed at demonstrating alternative ways to manage peaks in energy demand while addressing grid challenges and reducing the risk of power price shocks.
AGL sign
It will feature the installation of 1,000 solar power storage batteries with software, which will allow power flows into the grid to be managed centrally while stabilizing the grid during peak demand.

Expected to provide 5 MW of peaking capacity, the virtual power plant will capable of storing 7 MWh of energy.

AGL CEO and managing director Andy Vesey said: ““It offers consumers the opportunity to be part of the world’s largest virtual power plant, giving them greater ability to consume more of the energy generated from their own rooftop solar systems, lowering power bills, reducing emissions and purchasing a battery at a significant discount.”

The project partners include the Federal Government through its renewables funding agency, the Australian Renewable Energy Agency (ARENA), who have granted conditional approval of $5m.

ARENA CEO Ivor Frischknecht said: “The approach can ease local network constraints in South Australia, displace gas power and complement the Victorian interconnector, especially during times of peak demand.”