EnergyAustralia, a leading electricity provider, has announced its ambitious plans for a large-scale battery project in South Australia, marking a significant step in the company’s broader strategy to implement 5 gigawatts (GW) of grid firming projects nationwide.
The initial phase of the project is set to cost over $100 million and will be situated near EnergyAustralia’s Hallett power station in Canowie, approximately 210km north of Adelaide. This first stage aims to establish a storage capacity of 50 megawatts (MW) and a discharge capacity of up to 200 megawatt-hours (MWh), equivalent to powering approximately 81,000 homes for four hours.
The company envisions expanding the battery’s capacity to 200MW/800MWh over time, ultimately replacing its gas-fired power station at the Hallett site. To support this endeavour, EnergyAustralia will seek federal support through the government’s recently expanded Capacity Investment Scheme, which is currently open for project submissions in South Australia and Victoria. The scheme aims to add 2400MWh of storage capacity across the two states.
Dan Nugent, EnergyAustralia’s head of portfolio development, emphasised the role of the battery in the company’s energy transition. While no specific timeline has been set for retiring the gas-fired power station at the Hallett site, Nugent said it is essential there is firming capacity, either through battery storage or gas-fired firming.
Bids for the current round of the Capacity Investment Scheme are set to close on February 23. EnergyAustralia anticipates making an investment decision on the Hallett battery project by the end of the year, pending further assessments, community consultation, and state government approvals. If approved, the battery is expected to be operational as early as the beginning of 2026.
While EnergyAustralia has announced definitive plans for the closure of its coal-fired power stations, with the Yallourn facility in Victoria due for retirement in 2028 and the Mt Piper power station in NSW by 2040, the fate of the gas-fired plants remains uncertain. Nugent acknowledged the key role gas-fired plants play in grid firming, particularly given the current limitations of battery storage technology.
The company is actively exploring other technologies for longer duration storage, including a pumped hydro project at Lake Lyell near Lithgow in NSW and investigating longer duration storage technologies at a development site in Marulan, southwest of Sydney. Nugent highlighted emerging technologies such as compressed air energy storage from Hydrostor as potential solutions for extended duration storage.
As part of its broader energy transition strategy, EnergyAustralia has committed to spending $5 billion by 2030 to develop 3GW of renewable energy generation assets, replacing its coal power generation. This substantial investment will be directed both internally and through strategic partnerships, signalling a strong commitment to a more sustainable and cleaner energy future.
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