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NZ Battery Other Technologies Feasibility Study

The Ministry of Business Innovation and Employment (MBIE) engaged WSP to investigate options to manage or mitigate New Zealand's "dry year problem".


PROJECT DESCRIPTION

A feature of New Zealand’s highly renewable electricity system has been that our reliance on inflows into our hydroelectric dam reservoirs make us susceptible to potential shortages in “dry years”. In the future, with more of our electricity supply coming from wind and solar generation, the problem may become a “dry, calm or cloudy year problem”.

The NZ Battery Project has been tasked with finding a solution to this problem in a way that supports New Zealand’s commitment to climate change mitigation and a 100 percent renewable electricity future. The Project has several workstreams investigating the various parts of the problem. The project also aligns with WSP's own commitment to supporting technological and policy solutions that will help with that transition.

CLIENT BRIEF

WSP was engaged by MBIE to review several alternative, non-hydro technologies that could potentially help to manage, or mitigate, the dry year problem by storing 1–5 TWh of electricity (or equivalent schedulable generation releasing energy only when required) from 2030. These “Other” Technologies may be considered as stand-alone options for the NZ Battery, or as building blocks for a full solution. The ultimate outcome of the Other Technologies Feasibility Study is to determine which, if any, alternative technology option, or combination of options, should be taken forward for further investigation and consideration alongside a pumped hydro solution, as part of a detailed business case.

Location

  • Otago, New Zealand

Client

  • Ministry of Business Innovation and Employment

Project Value

  • $1m+

Project Status

  • Complete

 The Other Technologies Feasibility Study comprised two main stages:

Stage One


The first was the Options Analysis, which focused on the review of five non-hydro renewable technologies, to recommend a smaller number of Prospective Options for further study. During this stage Biomass, Geothermal Energy, Hydrogen, Air Storage and Flow Batteries were assessed.

Stage Two


The second was the Feasibility Assessment for the selected Prospective Options. This included technical and commercial feasibility assessments of each technology option, including the viability of integration and deployment by 2030 in New Zealand.

Globally, interest in energy storage to unlock greater renewables penetration is on the rise, although not generally at the scale and duration that Aotearoa New Zealand seeks. In this regard, the large-scale nature of the NZ Battery Project is unique

Hover over the Infographic below to see the Biomass Conversion Process

ASSESSMENT APPROACH

This assessment helped inform the decision as to whether any should be developed further (as an Advised Option).

Over the course of the Feasibility Assessment, WSP’s global team members, together with MBIE’s NZ Battery Project Team (including support from other subjectmatter specialists) applied a structured process to evaluate each of the Prospective Options.

The assessment approach aimed at achieving a technology or portfolio of technologies capable of providing large-scale, long-term, renewable energy storage. The options were not generally constrained by the need to identify specific locations,the need to align with any existing energy sector assets or developments, or whether the NZ Battery should be centralised into one location or distributed.

The work involved sharing drafts of findings for discussion, reviews and feedback, assessment workshops, technical and evaluation challenge sessions to arrive at the recommendations.

OUR SOLUTION


The findings and recommendations for the feasibility assessment were recorded in Reports, with a focus on how each option could best support a dry year solution. Also included were additional insights, serving as a commentary on alternatives and possible strategies to address common questions or issues, when deploying such technologies. 

Guidance on next steps was provided alongside an indication of schedule for engineering, procurement and construction works up to commissioning stage.

WSP were proud to have provided input to this potentially transformative renewable energy development for New Zealand.

Avoid up to 4 million T of CO2 emissions each dry year
Long term employment, usage of existing infrastructure.
Renewable biomass resource, proven and well-suited to our land.
Complex, but mature technologies. New generation added.
Geothermal energy crop maximised.
Competitive with alternatives (pumped hydro).

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