Fluence scores largest-ever contract: 2,000 MWh grid-forming battery in Australia for AGL

Australian energy major AGL has reached final investment decision (FID) on the 500 MW / 2,000 MWh Tomago battery energy storage system (BESS) located approximately 20 kilometres northwest of Newcastle, New South Wales (NSW), and has appointed energy storage company Fluence to deliver the project’s build.

Construction on the $800 million (USD 514 million) BESS will begin in late 2025, aiming for operation in late 2027, with a 20-year life span.

AGL Managing Director and Chief Executive Officer Damien Nicks said FID on the Tomago battery project marks another significant milestone in AGL’s transition and decarbonisation of its energy portfolio.

“Once operational, the Tomago Battery will expand on AGL’s existing suite of grid scale battery assets and contracted capacity from third parties and further enhance our flexible asset portfolio,” Nicks said.

“Importantly, both the 250 MW Torrens Island and 50 MW Broken Hill Batteries have delivered strong performance since they commenced operations, and the 500 MW Liddell Battery remains on track to commence operations in early 2026.”

Nicks added AGL has a clear pathway to FID for a further 900 MW of grid scale battery projects, as it aims to accelerate the development of a grid-scale battery portfolio and grow a fleet of flexible assets.

“We will continue to leverage our innovative, in-house capabilities to optimise the performance of our grid-scale battery assets,” Nicks said.

The project is regarded as one of the largest single transactions in the National Electricity Market (NEM) to date, and Fluence’s largest ever project transaction.

The project will use Fluence’s Gridstack Pro, a utility-scale energy storage product with optimised design and flexibility that will provide grid-forming capability and improve reliability.

Fluence APAC President Jan Teichmann said the project strongly demonstrates the company’s ongoing commitment to support AGL in its ambitious plan to deploy large-scale battery storage systems for a renewable energy future across Australia.

“Australia remains one of the most important storage markets globally, experiencing significant growth as the country accelerates its transition to renewable energy sources,” Teichmann said.

Fluence Australia General Manager Jason Beer said the Tomago BESS is a testament to the strength of Fluence’s full scope project deployment expertise, and products offered to the market.

The Tomago BESS is Fluence’s third grid-scale BESS delivered for AGL, having completed the 50 MWh Broken Hill BESS and currently constructing the 1000 MWh Liddell BESS.

From pv magazine Australia.