Neoen Australia, a French independent power producer owned by Canadian asset manager Brookfield, has commenced construction of a 227MW/907MWh grid-forming battery storage system in South Australia.
This brings Neoen’s total storage capacity in operation or under construction past 9GWh across Australia.
Stage 2 of the Goyder battery storage system will be built by the same contractor pairing as Stage 1, with Tesla supplying the battery technology and engineering services firm UGL delivering the balance of plant, high-voltage infrastructure and commissioning support.
The project will deploy Tesla’s Megablock architecture, which combines four Megapack 3 units into a single pre-engineered block delivering 20MWh of capacity per block, and is designed for faster installation and lower construction costs than earlier Megapack configurations.
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As reported by Energy-Storage.news last week, Tesla’s energy division gross margin declined 19% in the second quarter of 2026; however, Tesla deployed 13.5GWh of its utility-scale Megapack and Powerwall residential systems across Q2, which was its second-highest quarterly deployment on record.
When combined, Stages 1 and 2 will deliver a 454MW/1,814MWh asset at the Goyder site, adjacent to ElectraNet’s Bundey Substation.
Both stages are supported by 15-year capacity contracts awarded through South Australia’s inaugural Firm Energy Reliability Mechanism (FERM) tender.
Indeed, South Australia’s first FERM tender awarded agreements to six battery storage projects totalling 1,334MW/5,336MWh in May 2026, with Neoen securing two of the six FERMAs, one for each stage of Goyder Battery, each carrying a committed power output of 75MW and 600MWh of storage capacity, against a combined nameplate of 400MW/1,600MWh.
The mechanism requires projects to provide 8-hour dispatchable capacity during periods of system stress, targeting operational dates of November 2028.
The Goyder Battery is underpinned commercially by a 10-year renewable energy baseload agreement signed with mining company BHP in September 2025, under which Neoen will supply a 24/7 100MW solution combining output from the Goyder North Wind Farm with storage from the battery from July 2029 to power BHP’s Olympic Dam, Carrapateena and Prominent Hill copper mines in South Australia.
Neoen noted in its LinkedIn announcement that the commencement of Stage 2 construction means the company has progressed over 1GW of storage capacity into construction in less than 12 months across four Australian states.
A growing South Australian footprint
The Goyder Battery sits within Neoen’s broader Goyder Renewables Zone, which, when complete, will comprise up to 1GW of wind generation from Goyder North Wind Farm, 600MW of solar PV and up to 900MW/3,600MWh of battery storage.
The zone’s operational anchor is the 412MW Goyder South Wind Farm, which has been running since 2024.
The Goyder Battery has planning approval for up to 900MW/3,600MWh, meaning Stages 1 and 2 together represent less than half of the site’s consented storage capacity, with further stages described as under development.
Neoen’s presence in South Australia dates back to 2017, when it commissioned the Hornsdale Power Reserve, the world’s first large-scale lithium-ion battery storage system at the time, and the first utility-scale project to deploy grid-forming inverters in Australia.
The Goyder Battery announcement is the latest in a series of construction milestones for Neoen across Australia. In June 2026, the company began construction of a 215MW/963MWh battery storage system co-located at its 440MWp Culcairn Solar Farm in New South Wales, describing it as its first behind-the-meter battery deployed at a solar PV plant.
The Culcairn BESS is supported by a Long-Term Energy Service Agreement (LTESA) under the NSW Electricity Infrastructure Roadmap and targets commercial operations in 2028.
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