Lightsource bp kicks off construction on CIS contract-winning solar-plus-storage plant in Australia

September 19, 2025
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Developer Lightsource bp has commenced construction on a 49MW/562MWh battery energy storage system (BESS) that will be co-located at the 585MWdc Goulburn River solar PV power plant in New South Wales, Australia.

The company, owned by the multi-national fossil fuel major bp, said the solar-plus-storage project, located near Merriwa, approximately 340km northwest of Sydney, represents one of the first large-scale direct current (DC) coupled solar-battery hybrid installations to enter construction in Australia.

That said, several other DC-coupled solar-plus-storage sites have already been developed in Australia. Western Australia, for example, already has an operational DC-coupled hybrid site in the form of Green Power Generation’s 128MW Cunderdin hybrid solar PV and BESS project, which was inaugurated in early April 2025.

By connecting the battery on the DC side of the plant, the system will share inverters, transformers and a single grid connection with the solar array. This configuration offers several advantages over traditional AC-coupled systems, including improved efficiency, reduced equipment costs and enhanced flexibility in energy dispatch.

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The battery component features approximately 10-hour duration capability, positioning it among Australia’s longest-duration grid-scale battery systems currently under construction.

Adam Pegg, country manager for Lightsource bp Australia and New Zealand, emphasised that the project demonstrates how long-duration energy storage (LDES) can firm solar generation, enabling coal plants to retire on or before schedule.

“By demonstrating that long-duration storage can firm solar generation, we can cover the peak periods and enable coal to retire on or ahead of schedule,” Peng said.

Support via Australia’s Capacity Investment Scheme

The hybrid project received federal backing through the Australian government’s Capacity Investment Scheme (CIS). Specifically, the project received backing in the first tender round, which saw solar PV awarded 2.8GW.

At the same time, the battery component is underwritten by a New South Wales Long-Term Energy Service Agreement (LTESA).

This 10-hour-duration LDES project is not to be confused with another BESS Lighthouse bp is developing in the area. Indeed, the Goulburn River Standalone BESS is a 450MW/1,370MWh battery storage system that recently received support in the third tender round of the CIS.

Goulburn River forms part of an 8GW development pipeline that Lightsource bp is advancing across Australia and New Zealand. Many projects in this pipeline combine large-scale generation with storage to deliver low-carbon electricity when demand is highest.

Among other projects in development is the 850MW Sandy Creek Solar Farm, which features a co-located 700MW/1,400MWh BESS in New South Wales.

Both assets have secured access rights within the Central-West Orana Renewable Energy Zone, with the solar PV power plant receiving support through the first CIS tender.

The Goulburn River project is expected to be operational in 2026, with the solar PV power plant following in 2027. Connection works will be completed by Lumea, the commercial arm of transmission network service provider Transgrid, to integrate the project into the National Electricity Market (NEM).

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