The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Australia: Neoen launches phase two build of 2.2GWh Collie BESS following capacity market award


IPP Neoen has launched construction on the second phase of its Collie BESS project in Western Australia, following the award of a capacity services contract.

The France-headquartered independent power producer (IPP) has given notice to proceed (NTP) to contractors Tesla and UGL, an engineering, procurement and construction (EPC) firm, to start building the 341MW/1,363MWh phase two portion of the project.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The battery energy storage system (BESS) project is in the South-West Interconnected System (SWIS) grid in Western Australia, and its first phase of construction, totalling 219MW/877MWh, is already underway. That portion is set to come online in Q4 this year, while phase two will be completed in Q4 2025.

Both phases have won separate capacity services contracts with the Australian Energy Market Operator (AEMO). Phase one of the project won a 197MW, 4-hour contract in June 2023, while phase two’s 300MW, 4-hour win was the prompt for giving Tesla and UGL notice to proceed, announced today (29 April).

Specifically, they will provide four hours of discharging capacity across the evening peak via AEMO Non-Co-optimised Essential System Services (NCESS) contract starting 1 October, 2025. The service addresses the risks relating to the retirement of coal power plants, the proliferation of rooftop solar and increasing demand in the state.

The Collie BESS project, near the town of Collie, is on the land of the indigenous Wilman people of the Bibbulmun nation. It will connect to a new substation from transmission system operator (TSO) Western Power.

Neoen said that once both phases of construction are complete, the Collie BESS will be able to cover 20% of the average demand on the SWIS grid. The two phases together total 560MW/2,240MWh of BESS capacity, making it among the largest projects in the world. It utilises Tesla’s Megapack 2 XL, its latest grid-scale BESS product.

It brings Neoen’s total portfolio of clean energy under operation or construction in Australia to 4GW, of which 1.7GW is BESS, 1.3GW is solar, and 1.1GW is wind.

It has also enlisted Tesla and UGL for its 200MW/400MWh Western Downs Battery project in Queensland, which will come online later this year, while it handed the supply contract for the identically-sized Blythe BESS in South Australia to BESS and EPC duo NHOA and Elecnor.

Operational assets include the 300MW/450MWh Victorian Big Battery and the 150MW/193.5MWh Hornsdale Power Reserve in Victoria and South Australia, respectively.

Australia is one of the most active energy storage markets globally with some 2.5GWh coming online last year across all segments, with projects over 10MWh accounting for just over half of that. The country is launching a new Capacity Investment Scheme which will further boost grid-scale deployments via financially supporting 9GW of dispatchable renewable generation.’ publisher Solar Media will host the 1st Energy Storage Summit Australia, on 21-22 May 2024 in Sydney, NSW. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

Read Next

May 15, 2024
US asset manager Stonepeak has entered Japan’s energy storage market, forming a partnership with CATL-backed developer CHC.
May 10, 2024
Commissioning has been completed on the first commercial-scale project using Energy Vault’s gravity energy storage technology, while the firm has also secured a 400MWh BESS order for a project in Australia. However, it expects revenues this year to be 70-85% lower than 2023.
May 8, 2024
Over a gigawatt of bids from battery storage project developers have been successful in the first-ever competitive auctions for low-carbon energy capacity held in Japan.
May 2, 2024
Australia’s energy storage sector has seen trio of significant announcements around major battery energy storage system (BESS) projects.
May 1, 2024
G7 nations have agreed a new global energy storage target of 1500GW by 2030, a six-fold increase from today’s levels.

Most Popular

Email Newsletter