Containerized BESS project financing options in New Zealand 2030

Will Bess become a cog in New Zealand's energy landscape?

We expect that BESS will also become an increasingly important cog in New Zealand’s broader energy landscape and that we will see utility-scale solar projects incorporating batteries as a means of providing dispatchable generation during peak demand and enhancing grid stability.

What is the Bess project?

The project is designed to enhance the stability and reliability of New Zealand’s electricity grid. By storing excess energy generated, including from renewable sources like wind and solar, the BESS can release this energy during periods of high demand.

Why is Bess important in New Zealand?

The uptake of BESS in New Zealand is particularly important given that it can help to solve one of New Zealand’s biggest energy challenges – meeting peak demand. In recent years, there have been ongoing concerns as to the reliability of New Zealand’s energy supply following blackouts in 2021.

When is the first Bess project commissioned in New Zealand?

Whilst amendments were first made to New Zealand's Electricity Industry Participation Code 2010 (the Code) in 2018 to facilitate grid-scale BESS, the first significant (35MW) BESS project was not commissioned until March 2024.

How does a Bess project make money?

There are two key direct revenue streams for a standalone BESS project: energy arbitrage and ancillary services. Energy arbitrage involves purchasing electricity to charge the batteries when wholesale prices are low and supplying that energy back to the grid when wholesale prices are higher.

What is a Bess system?

BESS systems allow for increased penetration of intermittent renewable generation, which complements the global transition to zero carbon generation. Infratec’s experience with BESS systems includes concept design and development, detailed design, installation, and integration of BESS systems in New Zealand and throughout the ASEAN regions.