How Electro-Thermal Energy Storage (ETES) Could End Australia’s Energy Dilemma
Written by Dr. Alexander Post
The need for long term energy storage in Australia is really heating up. Global climate accountability closing in, and the resulting pressure on industries, major emitters and the infrastructure that underpins them is intensifying. The good news is that the race to slash emissions has fuelled Australia’s rapid uptake of renewable energy – the share of renewables in our national electricity mix is at a record high, hitting 77.9% on Sunday 21st September. The Clean Energy Council reported that 2024 delivered a record $9 billion in clean energy commitments, the strongest year since 2018, and created 10,000 new jobs.
But with that progress comes a double-edged sword. As we lean more heavily on variable renewable energy sources like wind and solar, we are also becoming increasingly vulnerable to the whims of the weather. Sunlight and wind cannot be dialled up on demand. When skies are overcast or conditions are still, generation drops. For households, that can mean less reliability and higher bills. However, for industry, the ramifications are far more severe – sudden outages may bring production lines to a screeching halt, disrupt supply chains, spoil perishable stock, and wipe millions off the bottom line in a single day. Without reliable large-scale storage solutions, industries are forced to fall back on fossil fuels.
The paradox of abundance
This is the paradox of Australia’s energy transition. Renewable generation is at a record high – on average powering 43% of the main electricity grid, according to the Australian Energy Market Operator (AEMO) – yet we have no viable means of storing it for when we need it.
The shift to renewable energy undoubtedly introduces new operational risks. Surplus generation capacity is wasted by curtailment when the grid can’t absorb it, while shortfalls force reliance on carbon-heavy backup sources. These swings threaten the continuity of industrial operations and chip away at the competitiveness of Australian industries.
Managing the risks of renewable variability
Long-duration energy storage technologies, such as Electro-Thermal Energy Storage (ETES) systems, offer a way to manage the risks associated with renewable volatility. Acting as a shock absorber for the grid, ETES captures surplus renewable energy when generation is high, storing it as high-grade heat until needed. That input energy can be held for hours or even days before being dispatched as clean, reliable energy output.
Many ETES systems are designed to complement existing thermal processes, whether industrial steam, heating loops, or even district thermal systems. They avoid costly overhauls and sidestep the red tape and retrofitting delays that can hobble the roll-out of other technologies. Compared to lithium-ion batteries, ETES provides longer-duration storage at lower cost per kWh, making it especially suited to bridging extended lulls in generation.
For industry, ETES ensures continuity of operations, allowing factories and processing plants to run predictably even when solar or wind output fluctuates. In this way, ETES transforms the variability of renewable energy into a controllable, dependable resource.
Why the time to act is now
MGA Thermal has partnered with Knode to deliver a 180 megawatt-hour industrial heat thermal storage project, demonstrating that ETES is commercially viable and deployable now. Globally, momentum is building, with industry leaders like Shell Ventures investing in thermal storage innovations, recognising that long-duration thermal storage will be a cornerstone of the energy transition.
Australia is blessed with some of the best renewable resources on the planet. We have an abundance of wind, sun, and the technical expertise to innovate our way to a cleaner energy future. But without large-scale storage, these assets remain underutilised due to curtailment in times of plenty. ETES offers us the means to capture what nature provides.
This isn’t only an environmental issue; it’s an economic imperative. The industries that rely on this energy – from manufacturing to mining – are a cornerstone of our economy. They can’t simply fall away because they lack the tools to decarbonise. The impact on jobs and economic output would be colossal, especially as we've been slow to move on future-facing industries. It’s go-time, just as we’re seeing in other markets.
Widening adoption across energy-intensive sectors, combined with embracing ETES as part of our national energy strategy, will stabilise the grid, safeguard industries, protect jobs, and unlock the full economic and environmental potential of Australia’s renewable resources.
