The Australian Renewable Energy Agency (ARENA) has announced $445,000 funding for AGL Energy Limited to develop a business case for grid-connected energy storage in South Australia.

In particular, the project will look into feeding the large amount of energy produced overnight by AGL’s South Australian wind farms back into the grid during the day.

Worley Parsons and ElectraNet are partnering with AGL on the $1 million project, which will build on previous studies that showed a case for commercial storage.

Electranet, the principal electricity transmission service operator in South Australia,  will address how storage would interact with the electricity networks rules and regulations. The global consultancy company, Worley Parsons, is focusing on technology selection and developing technical specifications, timeline and cost estimates.

ARENA CEO, Ivor Frischknecht, said that “The results will be shared with the Industry, providing the groundwork for other players to consider their own business case for commercial storage. In the long term it could potentially become the norm for new renewable energy installations, increasing their competitiveness and leading to more renewables in Australia.”

The study is scheduled for completion in September 2015.