The NSW Energy Security Corporation (ESC) will invest $100 million towards a large-scale battery platform across Sydney, Newcastle and the Hunter Central Coast to help strengthen electricity reliability.
Established by the NSW government, the ESC aims to accelerate co-investment in critical energy infrastructure to support a reliable and secure electricity system as the state’s coal-fired power stations retire.
The first ESC investment will support the rollout of a battery network expected to reach up to 1GW of capacity by 2031.
The funding will support the construction of four batteries, including two 200MW projects located at Steel River Industrial Estate in Newcastle and Homebush in Sydney. The remaining two projects will have capacities of approximately 100MW and 150MW.
Combined, the four batteries will be capable of powering up to 118,000 homes each day. The first 500MW of storage is expected to be operational by early 2029, aligning with the retirement of several NSW coal generators, with a further 150MW planned to come online later that year.
The projects will help improve reliability across NSW’s highest-demand regions while making use of existing electricity network infrastructure to accelerate delivery and minimise community impacts.
Construction of the first project in Newcastle is expected to begin next month.
The battery platform will be delivered by PLUS Grid Storage, a separate entity within the Ausgrid Group responsible for developing, owning and operating distribution-connected battery storage. PLUS Grid Storage operates independently from Ausgrid’s regulated network business.
NSW Minister for Climate Change and Energy, Penny Sharpe, said large-scale batteries are playing an increasingly important role in transforming the state’s electricity system.
“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,” Sharpe said.
ESC CEO Paul Peters said the investment targeted one of NSW’s most critical electricity demand centres, where land availability is limited and the need for energy storage is 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,” Peters said.
“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.”
