Neoen to build long duration battery in 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 One of the Collie Battery. It is expected to be operational in 4Q24. The battery is Neoen’s first major project in Western Australia (WA) and will also be the company’s first four-hour long duration battery globally. It is a good illustration of Neoen’s strategy to intensify its investment in storage through extended duration, enabling it to unlock greater value from its batteries. Long duration storage is increasingly needed in the transition to higher penetrations of renewable energy.

The AEMO Non-Co-optimised Essential System Services (NCESS) contract will run for a period of two years from 1st October, 2024. It will provide 197 MW of storage capacity for four hours, charging during the day and then discharging across the evening peak. This is intended to address the risks AEMO has identified relating to the retirement of coal power plants and increasingly high penetration of rooftop solar in WA.

“We are delighted to have won a NCESS contract and would like to thank AEMO, Western Power and the WA Government for placing their trust in us. This is an exciting time for Neoen as it is our first major project in WA, and it also means we now have a big battery in five of the six Australian states. With our growing team in Perth and a strong pipeline of projects, we look forward to playing an increasingly significant role in the state’s rapid decarbonisation,” said Louis de Sambucy, CEO, Neoen Australia.

Collie Battery is Neoen’s sixth big battery in Australia, bringing its total Australian storage assets to over 1.1 GW in operation or under construction, and further cementing its position as the country’s leading developer, owner and operator of batteries. It already owns and operates the 300 MW/450 MWh Victorian Big Battery in Geelong and the 150 MW/193.5 MWh Hornsdale Power Reserve in South Australia, whilst its 100 MW/200 MWh Capital Battery, 200 MW/400 MWh Blyth Battery and 200 MW/400 MWh Western Downs Battery are all currently under construction.

“The NCESS process run by AEMO was created through the WA government’s Energy Transformation Strategy, and it is great to see Neoen’s Collie Battery progress as a result of these reforms. Big batteries like this one will help balance the needs of the energy system by enabling us to take advantage of more of our plentiful renewable energy resources,” commented Jai Thomas, Energy Policy WA’s Coordinator of Energy.

“As Western Australia’s major electricity system transitions away from coal-fired generation, critical investments are needed in low-cost renewable energy backed by firming generation, such as batteries, gas, and augmentation of the transmission network. Neoen’s Collie Battery, procured through AEMO’s NCESS process, will provide consumers with energy security and reliability during the transition to firmed renewables,” added Daniel Westerman, CEO of AEMO.

 

 

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