Approval for 2 GWh battery in Australia

The NSW state government has confirmed it has provided planning approval for the 500 MW/2 GWh Tomago battery energy storage system (BESS) to be built, operated, and maintained by energy company AGL.

In its assessment report, the NSW Department of Planning, Housing and Infrastructure said the AUD 1 billion ($650 million) battery would provide a range of benefits for the region and the state as a whole, including enabling renewable energy to be stored and dispatched during peak demand periods.

The department said the battery, to be built alongside two Transgrid-owned substations in the Hunter-Central Coast Renewable Energy Zone, would support the state’s continued transition away from coal- and gas-fired power stations to renewable energy generation such as solar and wind.

“Importantly, the project would contribute to energy security and reliability by providing frequency control [grid] ancillary services and system restart ancillary services, meaning the project would contribute to energy supply meeting energy demand,” it said.

Targets

Travis Hughes, general manager of power development at AGL, said the state’s approval of the project marks another important step in the development process of the Tomago battery, and the company’s broader renewable energy targets.

“The 500 MW, four-hour grid-scale battery has the potential to provide additional firming capacity for AGL’s NSW customers,” said Hughes.  “It will also contribute towards AGL’s ambition to add 12 GW of renewables and [renewable energy] firming to our portfolio by 2035.”

A final investment decision on the estimated AUD 1.07 billion Tomago battery is expected in 2025 with construction of the project likely to commence in 2026. It is anticipated the project will generate 200 jobs during its construction phase.

The NSW government said the Tomago battery adds to the state’s growing network of 57 large-scale batteries that have already been approved to support the clean energy transition.

NSW Planning Minister Paul Scully said BESS are playing an increasingly important role by providing firming capacity to support renewable generation while improving the strength and reliability of the electricity network.

“Large-scale batteries are crucial for our energy future,” said Scully. “They help store renewable energy, making sure we have a reliable power supply even when the sun isn’t shining or the wind isn’t blowing. This not only supports our transition to cleaner energy but also strengthens our energy security and resilience. Investing in these batteries means a more sustainable and dependable energy system for everyone.”

The Tomago battery will add to AGL’s existing suite of grid-scale battery assets and contracted capacity from third parties. This includes the 250 MW/250 MWh Torrens Island battery, in South Australia, and the 50 MW/50 MWh Broken Hill battery in western NSW. Those projects commenced operation in August 2023 and August 2024, respectively,

AGL is also building a 500 MW, two-hour duration BESS at the site of its shuttered Liddell coal-fired power plant in the NSW Hunter Valley. The start of operations at that site is targeted for mid-2026.

From pv magazine Australia.