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Project overview
  • Lead Organisation

    Neoen Australia


    Hornsdale, South Australia

    ARENA Program

    Advancing Renewables Program

  • Start date

    19 December 2019

    End date

    29 June 2026

  • Project Partners


The Hornsdale Power Reserve Upgrade project involves a 50 MW / 64.5 MWh expansion of the Hornsdale Power Reserve, showcasing the additional benefits grid-scale batteries can provide to the National Electricity Market and Australian consumers.


The Hornsdale Power Reserve Upgrade project recognises that as the Australian electricity grid transitions towards a higher penetration of renewables, new substitutes for the services provided by traditional synchronous generation (such as coal and gas fired generators) will be required in order to maintain system strength and reduce the curtailment of renewable energy generators.

Further, the full extent of frequency and System Integrity Protection services able to be provided by battery energy storage systems is not fully recognised within the current market rule settings – limiting the viability of future battery business cases.


Tesla has developed a ‘rotating machine model’ that provides a ‘virtual inertial response’ to changes of frequency allowing the system to directly mimic synchronous machines. This feature has been implemented on numerous microgrid sites, and it is now available for grid-connected current-source generation.

Neoen (in conjunction with Tesla, AEMO and ElectraNet) will implement a series of detailed testing plans to demonstrate the capability of the expanded facility to provide an inertial response. The testing plans will also further support the interconnector with Victoria, reduce curtailment and facilitate a future update of the Market Ancillary Services Specification and related registration requirements.


Alongside additional power system reliability and continued cost savings to consumers, the expansion will provide an Australian-first large-scale demonstration of the potential for battery storage to provide inertia to the network, which is critical to grid stability and the future integration of renewable energy. This will enable South Australia (SA) to continue to harvest wind and solar resources and support the transition to net 100% renewable energy generation and further drive down electricity prices for all consumers.

Additional inertia within SA should allow for a greatly increased limit on asynchronous generators (i.e. traditional wind and solar) in the state providing immediate benefits to consumers and wind generators through increased supply of cheap renewable energy.

Additional impact

In addition to providing essential services to the electricity grid, the Hornsdale Power Reserve Upgrade project will create the necessary body of evidence to inform future regulatory changes. It is intended that the targeted collaboration and sharing of knowledge between Neoen, Tesla, AEMO, ElectraNet and ARENA will see battery services valued fully and create additional revenue markets to support future battery business cases.

Last updated 30 May 2022


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