The NSW Government has approved a $1 billion battery energy storage systеm [BESS] near Newcastle.
The project, to be developed by AGL near Raymond Terrace in the Tomago area, will be one of the state’s largest battery installations, capable of powering approximately 200,000 homes during peak demand periods.
The massive 500-megawatt (MW) battery, with a storage capacity of 2000 megawatt-hours (MWh), will play a crucial role in stabilising the local power grid.
The systеm is designed to store energy during low-demand periods and rapidly adjust its output based on electricity requirements, ensuring reliable power supply throughout the Hunter-Central Coast Renewable Energy Zone (REZ).
“With a $1 billion price tag, this battery is one of the biggest in NSW and injects a major capital investment within the Port Stephens and Lower Hunter areas, ” Minister for Planning and Public Spaces Paul Scully said.
“Large-scale batteries are crucial for our energy future. 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 systеm for everyone.”
The project is expected to generate significant economic benefits for the region, creating 200 construction jobs and six permanent operational positions.
As part of the development agreement, AGL will contribute approximately $2.2 million to Port Stephens Council for community improvement projects through a Voluntary Planning Agreement.
The Tomago battery joins NSW’s expanding network of 57 approved large-scale batteries, supporting the state’s transition away from coal-fired power.
Minister for Hunter Yasmin Catley emphasised the project’s regional significance.
“The $1 billion project injects a major capital investment within the Upper Hunter region, bringing a major boost to local jobs,” she said.
“Today’s announcement further shores up our region as a renewable energy powerhouse, that will power communities for decades to come.”
The final investment decision for the project is expected in 2025.
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