Battery supplier Powin, which is the primary provider for Australia’s Waratah Super Battery in New South Wales, has expressed significant financial concerns that may lead to potential layoffs of its staff within weeks. In a letter sent to regulators in Oregon, where Powin is based, the company indicated that it might shut down operations by July 28 unless conditions improve.
The letter, signed by Powin’s VP for Human Resources, Scott Getman, pointed out the rapidly changing business environment, suggesting that without necessary improvements, layoffs could occur, affecting more than 250 employees, including the executive team.
The Waratah Super Battery is hailed as Australia’s most powerful battery facility, consisting of 850 megawatts (MW) and 1680 megawatt-hours (MWh). This battery aims to serve as a crucial “shock absorber” for the grid, effectively bolstering capacity for major consumption areas like Sydney and Newcastle, especially as the country prepares for the closure of its largest coal generator in Eraring.
While this ambitious project was initially slated for completion by March this year, timelines have slipped. Now, it’s expected to potentially finish by the end of 2025, largely due to delays in commissioning processes that are not uncommon for new suppliers in Australia’s energy landscape.
There are also concerns about financial repercussions for Powin linked to project delays, although details remain scarce. In a proactive response to the uncertainty surrounding Powin’s future, Akaysha Energy, which owns the Waratah project, stated it has contingency plans to ensure project continuity despite its supplier’s struggles. They confirmed that construction has continued and emphasized that the battery packs have been installed, with ongoing testing activities.
EnergyCo, the state agency responsible for overseeing the development of the Waratah battery, similarly noted that the project has been progressing on schedule, asserting that testing and commissioning are underway.
As Powin navigates these challenging financial waters, it’s important to recognize the broader implications for the renewable energy sector in Australia, particularly as the country shifts towards a greener grid amidst fluctuating market conditions. The ongoing development and eventual operational capability of projects like Waratah could play a vital role in stabilizing energy supplies as traditional coal-based power generation dwindles.