Neoen became famous in Australia for the Big Battery in South Australia back in 2017. Fast forward 6 years and our definition of a ‘big battery’ has changed considerably.
Neoen has just been awarded a new 197 MW / 4-hour capacity services contract by the Australian Energy Market Operator (AEMO) in a competitive tender initiated by the Western Australian Coordinator of Energy.
The service will be delivered by Stage 1 of Collie Battery sized at 219 MW / 877 MWh and consisting of 224 Tesla Megapack 2XL units.
The project, which Neoen originated in 2021, received development approval for a total of 1 GW / 4 GWh in December 2022. The battery will be located near the town of Collie, in the South West region of Western Australia (WA).
It will connect to Western Power’s Shotts Terminal substation, which is part of the South-West Interconnected System (SWIS), a separate network from 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 1 of Collie Battery. It is expected to be operational in Q4 2024.
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.
Louis de Sambucy, Neoen Australia’s CEO
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.
The battery is Neoen’s first major project in WA and will also be its first 4-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 4 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 the increasingly high penetration of rooftop solar in Western Australia.
The Collie Battery will deliver a significant economic boost to the Shire of Collie, as part of the region’s energy transition, creating over 120 construction jobs and opportunities for local suppliers. The project will have an annual community benefit-sharing program, co-designed with the local community.
Australia is charging forward with renewable energy, with the Collie Battery now the 6th big battery in Australia for Neoen, 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.
Neoen already owns and operates:
- 300 MW / 450 MWh Victorian Big Battery in Geelong
- 150 MW / 193.5 MWh Hornsdale Power Reserve in South Australia
- 100 MW / 200 MWh Capital Battery
- 200 MW / 400 MWh Blyth Battery
- 200 MW / 400 MWh Western Downs Battery are all currently under construction.
“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 and gas, and augmentation of the transmission network.
Daniel Westerman, AEMO CEO
Neoen’s Collie Battery, procured through AEMO’s NCESS process, will provide consumers with energy security and reliability during the transition to firmed renewables.”
