Neoen commissions 540 MWh stage of Western Downs battery, EPC selected for Western Australian site

Australia was the subject of two more utility-scale battery announcements today with French developer Engie Neoen activating the 270 MW/540 MWh first stage of its Western Downs battery, in southeast Queensland, and Atmos Renewables selecting GenusPlus Group to build its 100 MW/400 MWh Merredin site in central Western Australia (WA).

Neoen Australia said, in a LinkedIn post, the National Electricity Market grid and Queensland’s electricity network are now benefiting from the Western Downs battery located near the town of Chinchilla, about 250 km west of Brisbane.

The battery features grid-forming inverters that can provide critical grid services such as synthetic inertia, emulating traditional mechanical inertia and considered essential for managing system strength as coal-fired plants retire.

“We are proud to see our first big battery in Queensland operating in and strengthening the National Electricity Market at a capacity of 270 MW/540 MWh, with grid-forming capabilities,” Neoen said.

“Stage One of Western Downs Battery has completed all construction and commissioning works and is ready to support its multiple virtual battery customers.”

The battery is part of Neoen’s Western Downs Green Power Hub that also includes a 400 MW solar farm, which was commissioned in 2023, and the 270 MW/540 MWh Stage Two battery that is under construction. That stage is expected to start operations in 2026.

Neoen said, once completed, the combined stages of the battery will deliver a total 540 MW/1.08 GWh of capacity that will operate in conjunction with the solar farm, facilitating the transmission of stored energy into the electricity network.

The battery is supported by multiple “virtual battery” offtake agreements with customers including AGL, Engie, and Shell Energy Australia.

Neoen said the virtual battery deals allow users to mirror the services of a grid-scale battery, virtually charging or discharging the battery when they choose, without actually owning or operating the battery. The approach also provides a revenue stream for Neoen which is able to operate the remainder of the battery capacity in other markets, including arbitrage (charging when grid electricity prices are low and discharging when they are high) and frequency control, and even grid services.

The milestone for the Western Downs battery project comes after Neoen announced that its 350 MW Culcairn Solar Farm in New South Wales has entered the commissioning phase while the 238.5 MW/477 MWh Blyth battery energy storage system in South Australia recently completed the commissioning process.

The projects form part of Neoen’s expanding Australian portfolio that now stands at more than 4 GW in operation or under construction.

Its battery energy storage projects include the 150 MW/193.5 MWh Hornsdale Power Reserve in South Australia, and the 300 MW/450 MWh Victoria Big Battery. It is also building the 341 MW/1,363 MWh second stage of the Collie battery energy storage system in Western Australia. The second stage follows on from the 219 MW/877 MWh first phase that commenced operations late last year.

Merredin

GenusPlus Group announced it has been awarded an AUD 65 million ($42 million) contract by Sydney-headquartered developer Atmos Renewables for the design and construction of the 100 MW, four-hour battery Merredin battery energy storage project in WA.

The Merredin battery energy storage project is being developed by Atmos and United Kingdom-headquartered partner Nomad Energy on a 4 ha site near the town of Merredin, about 260 km east of state capital Perth.

The battery will connect to the South West Interconnected System (SWIS) at Western Power’s nearby Merredin Terminal Station. The site is adjacent to the 100 MW Merredin Solar Farm that was developed by Nomad and is now owned by Singapore-based Sun Energy.

Genus has been awarded the contract for the balance-of-plant engineering and procurement for the battery energy storage system and associated substation. The contract covers detailed design, procurement, installation, and civil works.

Genus Managing Director David Riches said the contract builds on the company’s growing momentum in the renewable energy transition space and expands its capability and presence in the battery energy storage market.

“The Merredin BESS adds to our strong track record in delivering complex, large-scale energy infrastructure that underpins Australia’s clean energy future,” he said. “The award of this contract highlights the strength of our customer relationships and our reputation for reliable delivery.”

The Merredin battery is one of four renewable energy projects recently declared winners of the first tender in WA under the federal government’s Capacity Investment Scheme. The scheme provides long-term revenue agreements that decrease financial risk for investors.

Atmos said the Merredin battery will enhance grid reliability, particularly at times of peak demand, as the state government seeks to ramp up energy storage capacity to support its planned transition from coal-fired power to renewables.

“The four-hour battery will provide valuable support to the grid network and contribute to enhancing security of supply in the Western Electricity Market,” said the developer.

Works on the Merredin battery project are expected to commence shortly with Atmos aiming to achieve financial close in the coming weeks. Construction of the project is expected to be completed in early 2027.

From pv magazine Australia.