The $2 million contract, won by Tag’s MPower business unit, is a major new test for solar generation and storage facilities in Australia, and will be connected to the grid.

That’s an unusual step for MPower, which has typically focused on off-grid and remote power developments, such as its 1.7 megawatt Weipa solar project to support Rio Tinto’s bauxite mining operations.

The $4 million Weipa diesel hybrid project is expandable to 6.7MW at a further cost of $17 million.

The solar project will be the first of its size in Australia for a remote mining site, and should be complete within months.

US photovoltaic manufacture First Solar is producing the solar panels for both projects.

The Gatton 3.2MW facility will require around 800 kilowatt hours of lithium-ion battery storage.

Diversified power concern AGL Energy is also involved in the Gatton demonstration project.

MPower managing director Anthony Csillag said the project would demonstrate the viability of energy storage for large solar power plant applications.

“The ability to utilise renewable energy when it’s needed, as opposed to when it’s generated, provides a

major benefit to distribution networks that are required to provide a predictable, reliable and constant flow of electricity.

“Without energy storage, variable weather conditions can lead to unpredictable power output from renewable sources.

“This can be resolved by storing the electrical energy that is generated during periods of excess capacity and then releasing it during periods of peak demand.”

He said the proliferation of storage technology would facilitate greater uptake of renewable energy.

The Gatton landmark energy storage facility builds on the expertise developed by MPower following its residential storage project developed in partnership with AusNet Services and three remote area grid stabilisation systems developed for the Northern Territory’s Power & Water Corporation.

Tag is also looking at opportunities on several remote Pacific Islands where hybrid systems are ideal for replacing more expensive diesel projects.