Neoen has completed construction and commissioning of Stage 1 of its Western Downs Battery.
The work marks Queensland’s entry into the grid-scale battery storage market with a 270 MW / 540 MWh system equipped with grid-forming capabilities.
Located near Chinchilla, the battery connects to the national grid via Powerlink Queensland’s transmission network. It is co-located with Neoen’s 460 MWp solar farm and a second 270 MW / 540 MWh battery installation currently under construction.
The battery supports multiple virtual battery customers, including AGL, ENGIE Australia, and Shell Energy Australia.
The Western Downs Battery is designed to store energy for up to two hours, enabling it to dispatch during peak demand or provide Frequency Control Ancillary Services (FCAS).
The system incorporates advanced power inverters capable of virtual inertia, helping to stabilise frequency without relying on synchronous fossil fuel generation. This emulates traditional mechanical inertia and is critical for managing system strength as coal-fired plants retire.
Grid-forming inverters are a key feature, enabling the battery to establish voltage and frequency reference points. This supports the National Electricity Market (NEM) in areas with high inverter-based generation. By providing synthetic inertia and fast frequency response, the system enhances grid resilience and reduces the need for costly network upgrades.
The battery also unlocks latent transmission capacity by alleviating congestion, effectively operating as a non-wires alternative to traditional upgrades.
According to previous analysis of Neoen’s Hornsdale Power Reserve in South Australia, similar technology led to a $116 million reduction in FCAS costs in 2019 alone.
Neoen claims the Western Downs installation will similarly drive down wholesale prices and FCAS costs through increased competition.
The site spans 1,500 hectares on Barunggam country, and Neoen has implemented a registered Cultural Heritage Management Plan in collaboration with Traditional Owners. The project also sets a 10 per cent Indigenous participation target across employment and procurement.
Power purchase agreements with CleanCo underpin the financial viability of the solar component. CleanCo will source 352 MWp from the Western Downs Green Power Hub, supporting its mandate to deliver 1 GW of new renewables by 2025.
Construction was led by UGL, with Tesla supplying the Megapack technology. Sterling and Wilson Solar served as EPC for the adjacent solar farm.
Neoen expects Stage 2 of the battery project to become operational following the same model.