Renewables giant Neoen has been awarded a 300MW/4-hour capacity services contract by the Australian Energy Market Operator (AEMO) for Stage 2 of Western Australia’s Collie Battery, which is set to become the nation’s biggest battery project.
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The service will be delivered by Stage 2 of Collie Battery sized at 341 MW / 1,363 MWh and consisting of 348 Tesla Megapack 2 XL units. The project will connect to Western Power’s new Palmer Terminal substation in the South-West Interconnected System (SWIS), a separate network to the one on the eastern coast of Australia.
Neoen has provided notices to proceed to Tesla and construction contractor UGL (a member of the CIMIC Group) signalling the start of construction for Stage 2 of Collie Battery, which is expected to be operational in Q4 2025.
It follows on from the 219MW/877MWh Stage 1, which won a similar 197MW/4-hour contract with AEMO in June 2023, and is currently under construction and on track to start operating in Q4 2024.
Collie Battery Stage 2 will provide 300MW of storage capacity for 4 hours discharging across the evening peak. This is intended to address the risks AEMO has identified related to the retirement of coal power plants, high penetration of rooftop solar and increasing energy demand in Western Australia.
The announcement takes Neoen Australia’s total asset portfolio to 4GW of capacity in operation or under construction, cementing its position as the country’s largest developer, owner and operator of renewable energy.
Neoen Australia CEO Louis de Sambucy said, “We are thrilled to have won this second NCESS contract and would like to thank AEMO, Western Power and the WA Government for their continued trust. We are looking forward to the major contribution Collie Battery will make to supporting WA’s energy transition.
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“I would also like to congratulate the team on reaching the milestone of 4GW of capacity in Australia—it represents an extraordinary collective effort over the past 12 years.”
