Renewable energy company Maoneng’s Gould Creek Battery Energy Storage System (BESS) project near Adelaide has been granted development approval by South Australia’s Minister for Planning and Local Government.

The company obtained the approval without any significant changes to its proposal, opening the way for the project to proceed to its next stages.

Maoneng co-founder and chief executive officer Morris Zhou said the project highlighted the importance of grid-scale energy storage and would support the state’s renewable energy goals.

He said: “This approval is good news for all South Australians, as more battery storage will help smooth the transition to clean energy.

“South Australia has high levels of renewable energy generation, which is a positive development but can create challenges balancing supply and demand due to the intermittency of renewables.

“Our proposed battery storage will help manage this, supporting local energy reliability and security while also promoting greater uptake of renewables as a whole.

“We can now progress with more detailed work on our funding arrangements and supply chain, which will provide many opportunities for local businesses to get involved.”

The BESS will improve electricity grid reliability and network stability by drawing energy from the grid during off-peak periods for battery storage, and dispatching energy to the grid instantaneously during peak periods.

This will help the Australian Energy Market Operator maintain energy security.

The project has Crown sponsorship support from the Department for Energy and Mining and will deliver millions of dollars of investment into the local economy and community, who will continue to be engaged as key stakeholders.

Maoneng expects construction work to begin in late 2022 and finish a year later, generating up to 160 full time equivalent jobs during the construction phase.

South Australia’s Minister for Trade and Investment Stephen Patterson welcomed the development approval for the Gould Creek BESS project.

Patterson said: “South Australia’s reputation as Australia’s leader in renewable energy investment, and our credentials of producing around 60 per cent of our energy capacity from renewable sources, is helping to attract further investment into our state, creating jobs for our communities.

“Maoneng’s Gould Creek development will create up to 160 construction jobs and, upon completion, will provide 225 megawatts of power from South Australia.

“This is a significant $150 million investment by Maoneng Australia into South Australia’s sustainable future and I’m delighted to see an Australian-owned company that is so committed to the development of projects that are critical for powering a sustainable world.”