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At Aware Super, we invest in innovative renewable energy projects around the world where we see the potential for long-term returns for our members. It’s one of the ways we’re supporting the transition to a low-carbon global economy.
New York City microgrids
The overarching commitment of our Climate Transition Plan 2023 is to support an orderly and equitable transition to net zero greenhouse gas emissions through the investments we make as well as our stewardship and advocacy. One of our targets is to strive for net zero GHG emissions in our portfolio by 2050.
Our involvement in battery storage projects helps transition our portfolio to a low carbon economy and deliver strong long-term returns. It also fits with our work in aligning our investments with the UN Sustainable Development Goals (SDGs).
We recently invested US$30 million (around A$40 million) in SER Capital Partners’ New York City (NYC) microgrid projects. SER has managed NYC and other urban area microgrid projects for two decades and are experts in control and acquisition of land in complex markets.
What is a microgrid?
Microgrids can re-purpose underused real estate like parking lots, alleyways, and rooftops into battery storage hubs. The NYC microsites are multi-level facilities, with grid-connected batteries on the top floor and the potential for electric -vehicle charging stations at ground level. Nine lithium-ion battery hubs dispatch energy through the grid at peak times and re-charge in off-peak times.
Combined, the battery hubs generate 120 megawatt-hours of energy, supporting the NYC electricity grid, powering up to 6,300 homes, and helping New York state reach its goal of achieving 100% carbon-free electricity generation by 2040.
Texas microgrids
Aware Super has invested another US$10 million (around A$13 million) in SER Capital Partner's battery storage project in Texas, which will support 60 megawatt-hours of energy to power around 1,600 homes. Onshore winds will help charge the batteries via the grid when demand is low.
Texas faces a major energy transition risk with the closure of ageing coal-fired power plants and a need to rapidly dispatch alternative energy at peak hours in place of coal power. Renewable energy will come from wind power, which will help charge the batteries via the grid when demand is low.
Microgrid projects like those in NYC and Texas help support a cleaner grid with lower carbon intensity. They offer a similar capacity to Tesla’s original big battery.
Our involvement in battery storage projects in NYC and Texas help us better understand the return profile of this emerging sector and consider the potential for similar investments in Australia in future.