Australia’s New South Wales government has approved plans for a 500MW/2,000MWh battery energy storage system (BESS) being developed by energy generator-retailer EnergyAustralia.
The proposed AU$1 billion (US$650 million) 4-hour duration BESS will be located on land it owns near Mount Piper, a 1,400MW black coal-fired power plant to the northwest of the state capital, Sydney.
Plans for the BESS emerged in 2022, when EnergyAustralia started assessments and consultations with local communities to tentatively explore the possibility of developing the utility-scale BESS.
The coal-fired power plant is scheduled to retire in 2040, with the BESS expected to play a role in the phase-out. The proposed BESS will be adjacent to the plant and utilise existing regional infrastructure.
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The project will connect to the National Electricity Market (NEM) and provide critical firming alternatives, particularly as coal is phased out. According to the project’s scoping report, the BESS will “assist the ongoing transformation of the NEM towards a market with increasing levels of renewable energy generation and a reduced overall carbon intensity”.
This becomes the second 2,000MWh 4-hour duration BESS that the New South Wales government has recently approved. As reported by Energy-Storage.news yesterday (25 November), Australian energy major AGL Energy received approval for its 500MW/2,000MWh Tomago BESS.
Located near Newcastle, north of Sydney, the BESS will be located within the Hunter-Central Coast Renewable Energy Zone (REZ), enhancing its reliability.
Paul Scully, New South Wales minister for planning and public spaces, stated that the BESS will become one of the biggest in Australia and will provide significant capital for the local community.
“It stands ready to inject major capital investment, create jobs and provide Lithgow Council with AU$2 million to invest in local community projects,” Scully said.
“Large-scale batteries are crucial for our state’s energy future. They help store renewable energy, making sure that we have a reliable power supply even when the sun isn’t shining, or the wind isn’t blowing.”
EnergyAustralia, a subsidiary of Hong Kong-headquartered China Light & Power, has a portfolio of energy resources that includes gas peaker plants, coal as well as two of Australia’s first large-scale battery storage projects, Gannawarra and Ballarat.
The company’s 350MW/1,400MWh Woreen BESS was recently successful in the Capacity Investment Scheme (CIS) held in South Australia and Victoria earlier this year.
The 4-hour duration project is being built partly to replace EnergyAustralia’s 1,450MW Yallourn coal-fired power station, which is scheduled for retirement in mid-2028. The BESS is expected to be completed and connected to the grid in 2026.
