Wedoany.com Report-Aug. 1, AGL Energy, an Australian energy company, has finalized its investment decision for a 500MW/2,000 megawatt-hour battery energy storage system (BESS) in Tomago, Newcastle, New South Wales. The grid-scale battery, designed for four-hour storage, carries an estimated construction cost of A$800 million ($518 million) and is expected to operate for 20 years.
Construction of the battery will begin in late 2025, with operations expected to commence by late 2027.
The project will be funded through AGL’s existing financial resources, including operating cash flows and debt facilities, such as loans for sustainable investments. Construction is set to begin in late 2025, with operations starting by late 2027. The battery will support Australia’s energy transition by improving grid reliability and facilitating greater use of renewable energy sources.
AGL’s managing director and CEO, Damien Nicks, said: “The final investment decision on the Tomago battery project marks yet another significant milestone in AGL’s delivery of its strategy and the transition and decarbonisation of its energy portfolio.” He emphasized that the battery will enhance AGL’s portfolio of grid-scale storage assets and third-party capacity, contributing to a more flexible energy system.
AGL has engaged Fluence, a global provider of energy storage solutions, for the project’s engineering, procurement, and construction. Fluence will also handle ongoing maintenance. The Tomago BESS will utilize Fluence’s Gridstack Pro system, known for its adaptable design and ability to stabilize the grid through advanced technology. This project marks the third partnership between AGL and Fluence, following the completed 50MWh Broken Hill BESS and the 1,000MWh Liddell BESS, which is under construction.
Fluence Energy APAC senior vice-president and president Jan Teichmann stated: “This project strongly demonstrates our ongoing commitment to support AGL in their ambitious plan to deploy large-scale battery storage systems for a renewable energy future across Australia.” He noted Australia’s rapid growth as a key market for energy storage, driven by the shift toward clean energy.
Separately, AGL acquired full ownership of South Australia’s virtual power plant (SAVPP) from Tesla. Established in 2018, the SAVPP is one of Australia’s largest virtual power plants, aligning with AGL’s focus on innovative energy solutions.
The Tomago battery project underscores AGL’s commitment to advancing Australia’s renewable energy landscape. By expanding its storage capabilities, AGL aims to ensure a stable and sustainable energy supply, supporting both economic and environmental objectives.
