Key facts
- New South Wales government commits A$100 million ($71 million) to battery storage projects.
- The investment aims to support grid reliability as coal plants retire.
- Four batteries with a combined 650MW capacity will be funded by the Energy Security Corporation.
- Projects are planned across Sydney, Newcastle, and the Hunter Central Coast.
- The first 500MW of storage is expected online by early 2029.
Australia's New South Wales (NSW) government has announced an investment of A$100 million ($71 million) in large-scale battery storage projects. This initiative, managed by the newly established Energy Security Corporation (ESC), aims to enhance grid reliability as the state transitions away from aging coal-fired power generation.
The ESC plans to fund the construction of four battery projects with a combined capacity of 650MW, potentially expanding to 1GW by 2031. These projects are slated for locations in Sydney, Newcastle, and the Hunter Central Coast, with the initial 500MW expected to be operational by early 2029, followed by the remaining 150MW later that year.
This investment comes as NSW faces the retirement of its coal-fired power plants, beginning with the 2,880MW Eraring station in 2029. Operator Origin Energy has extended Eraring's operational life to April 2029 due to a lack of sufficient replacement capacity identified by the Australian Energy Market Operator.
NSW has also recently launched its largest renewable tender, seeking 2.5GW of capacity, and another tender for up to 12GWh of long-duration energy storage. Project announcements for these tenders are anticipated in late 2026.