ANNUAL REPORT 2021-22

18 ANNUAL REPORT 2021-22 ANNUAL REPORT 2021-22 19 Major projects 2021-22 has seen Territory Generation reach key milestones on major projects designed to improve our system reliability into the future. Our Fleet Transition Plan maps a gradual transition to assets that are flexible, renewable-capable, fast-starting, and mobile to complement the existing power systems. Forecasts estimate the transition will significantly reduce carbon emissions and optimise costs. It is being carried out in a cost-effective and staged process that will not impact electricity supply. DARWIN-KATHERINE BATTERY ENERGY STORAGE SYSTEM The Darwin-Katherine battery energy storage system (BESS) is a strategically important project that supports the transition to 50 percent renewables and the needs of the power system of the future. Once operational, the ~35MVA BESS will be online continuously, replacing some gas-fired generation at Channel Island Power Station and strengthening the system to support increased solar. Reduced gas operating and maintenance costs will deliver annual savings of about $9.8 million and carbon emissions of 58,000 tonnes. The tender for the $45 million BESS was awarded in late 2021, with other supporting tender awards following in the first half of 2022 and works commencing towards the end of the financial year. The BESS is expected to be operational in 2023. TM2500 The second new major asset to support the Darwin-Katherine power system is a TM2500 gas aero-derivative turbine. The agile, fast-start, hydrogen-capable TM2500 was transported by sea and road from the United Arab Emirates via Darwin Port to Channel Island Power Station. Installation works and commissioning will commence in 2023, with much of the civil, mechanical and electrical works to be sourced from local and interstate contractors. The TM2500 can run on different fuel sources to allow flexibility for plant operators. It will renew 22 megawatts to the power system and can start in less than 10 minutes under local requirements. The TM2500 is expected to be operational in 2023. The unit will provide additional capacity and dispatch flexibility. YULARA ENERGY TRANSITION INITIATIVE Orders have been placed for four new diesel generators for Yulara power station to replace aged gas generators, historically operated on compressed natural gas, which is no longer supplied. In this unit size range, diesel generation also provides more flexibility than gas to operate in support of high penetration renewables in the future. In addition, a 30-month study of regional and remote community microgrids is under way at Kings Canyon, Yulara and Tennant Creek. The study, which is funded by a $2.8 million grant from the Federal Government, is examining the use of a combination of solar, battery and diesel, plus the possibility of biofuels, hydrogen and waste-to-energy generation. Territory Generation is working with key stakeholders, including Indigenous organisations, tourism operators and mining companies, to deliver successful outcomes. An artist's impression of the Darwin- Katherine battery energy storage system being installed at Channel Island Power Station (image supplied by Hitachi Energy). OMT Mechanical, Matthew Blankenspoor, with Mechanical Apprentice, Asinate Bradbury, at Tennant Creek Power Station. RENEWABLE GENERATION AND EMISSION REDUCTION An important development the 2021-22 financial year was the lifting of the Northern Territory Government's moratorium on Territory Generation being involved in renewable energy in the Top End. We're exploring renewable options in all our power systems and are moving towards including renewable equipment in our fleet transition. We're also exploring options to develop a clear pathway to net zero emissions, including collaborating with the Department of the Chief Minister's Major Projects group to consider how Territory Generation can help to introduce a hydrogen economy. We're working with a range of proponents on demand management, generation and storage opportunities. Many exciting ideas are being considered. A TM2500 (image supplied by General Electric). 03 TM2500 TM2500

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