AGL's 500MW New South Wales battery reaches FID

Australia’s AGL Energy Ltd’s (ASX:AGL) has today reached a final investment decision (FID) on a 500-MW/1,000-MWh battery to be located on the site of the retired Liddell power station in New South Wales, the Australian Renewable Energy Agency (ARENA) announced.

Australia’s largest battery with grid-forming inverter capabilities has thus been given the green light and will start construction in early 2024, according to the announcement. The project, which has been expanded from the 250 MW/500 MWh planned originally, secured up to AUD 35 million (USD 23.6m/EUR 21.6m) in ARENA’s AUD-176-million Large-Scale Battery Storage Funding Round. It will be part of AGL’s Hunter Energy Hub.

ARENA chief executive Darren Miller explained that batteries like AGL’s are equipped with smart inverter technology which can help stabilise the grid as the country transitions to renewables.

The Liddell battery was also recently successful in a tender for dispatchable energy in New South Wales.

(AUD 1 = USD 0.673/EUR 0.616)