Released by: Minister for Energy and Climate Change
The NSW Energy Security Corporation (ESC) will invest $100 million in the rollout of a large-scale battery platform across Sydney, Newcastle and the Hunter Central Coast to strengthen electricity reliability as coal-fired power stations age and retire.
The Minns Labor Government established the ESC to accelerate co-investment in the critical energy projects needed to deliver a reliable and secure energy system for NSW, to keep the lights on and put downward pressure on power bills.
The inaugural ESC investment will support construction of a battery network expected to reach up to 1 GW of capacity by 2031.
The funding will support the construction of four batteries. The first two are 200 MW projects located at Steel River Industrial Estate in Newcastle and Homebush in Sydney. The next two will have a capacity of approximately 100 MW and 150 MW.
Combined, all four will have the capacity to power up to 118,000 homes a day. The first 500 MW of storage is expected to be operational by early 2029, as NSW’s coal generators begin to retire. A further 150 MW is expected to be added in late 2029.
This investment reflects the ESC’s role in bringing forward projects in parts of the system where timing and location are critical for the energy transition, delivering the storage capacity needed to maintain reliability as coal-fired power stations go offline.
Together, the projects will help strengthen electricity reliability in the state’s highest-demand region. The projects will make use of existing electricity network infrastructure, helping accelerate delivery and reduce impacts on communities.
The first project at Steel River Industrial Estate in Newcastle is expected to start works next month.
The battery projects will be delivered by PLUS Grid Storage, a separate entity within the Ausgrid Group responsible for building, owning and operating distribution-connected battery storage. PLUS Grid Storage operates independently from Ausgrid’s regulated network business.
Minister for Climate Change and Energy, Penny Sharpe said:
“Large-scale batteries are revolutionising NSW’s energy grid, delivering greater energy security and helping to drive down prices.
“With this first investment, the Minns Labor Government’s Energy Security Corporation is helping to accelerate more of these critical projects – helping keep power reliable and affordable for everyone across the state.”
Energy Security Corporation CEO, Paul Peters said:
“This is a platform investment in one of the state’s most critical load centres, where demand is highest, land is constrained and the need for storage is most immediate.
“PLUS Grid Storage’s ability to deliver these projects by 2029, while making better use of existing infrastructure, were critical factors in our decision to invest in this battery platform.
“The Energy Security Corporation is looking forward to its next set of investments as we work to support a reliable and secure electricity system for NSW.”
Kelly Wood, Executive in charge of PLUS Grid Storage said:
“We welcome the Energy Security Corporation’s investment in our program to deliver large-scale batteries which will accelerate the development of critical storage infrastructure across Sydney, Newcastle and the Hunter Central Coast.
“These partnerships are essential to delivering the next generation of energy infrastructure for NSW and ensuring customers continue to have access to reliable and affordable electricity as the energy system changes.”