The New South Wales (NSW) government confirmed it has provided planning approval for the proposed 500 MW / 2,000 MWh Tomago battery energy storage system to be built, operated and maintained by energy generating and retailing major AGL.
In its assessment report, the NSW Department of Planning, Housing and Infrastructure said the $1 billion (USD 650 million) battery would provide a range of benefits for the region and the state as a whole, including enabling renewable energy to be stored and dispatched during peak demand.
The department said the battery, to be built alongside two Transgrid-owned substations in the Hunter-Central Coast Renewable Energy Zone, would support the state’s continued transition away from coal and gas-fired power stations to renewable energy generation such as solar and wind.
“Importantly, the project would contribute to energy security and reliability by providing frequency control ancillary services and system restart ancillary services, meaning the project would contribute to energy supply meeting energy demand,” it said.
Travis Hughes, general manager of power development at AGL, said the state’s approval of the project marks another important step in the development process of the Tomago battery, and the company’s broader renewable energy targets.
“The 500 MW, four-hour grid-scale battery has the potential to provide additional firming capacity for AGL’s NSW customers,” he said. “It will also contribute towards AGL’s ambition to add 12 GW of renewables and firming to our portfolio by 2035.”
A final investment decision on the estimated $1.068 billion Tomago battery is expected in 2025 with construction of the project likely to commence in 2026. It is anticipated the project will generate 200 jobs during the construction phase.
The NSW government said the Tomago battery adds to the state’s growing network of 57 large-scale batteries that have already been approved to support the clean energy transition.
NSW Planning Minister Paul Scully said battery energy storage systems are playing an increasingly important role by providing firming capacity to support renewable generation while improving the strength and reliability of the network.
“Large-scale batteries are crucial for our energy future,” he said. “They help store renewable energy, making sure we have a reliable power supply even when the sun isn’t shining, or the wind isn’t blowing.”
“This not only supports our transition to cleaner energy but also strengthens our energy security and resilience. Investing in these batteries means a more sustainable and dependable energy system for everyone.”
The Tomago battery will add to AGL’s existing suite of grid-scale battery assets and contracted capacity from third parties. This includes the 250 MW / 250 MWh Torrens Island battery in South Australia and the 50 MW / 50 MWh Broken Hill battery in western NSW which commenced operations in August 2023 and August 2024 respectively,
AGL is also building a 500 MW, two-hour duration battery energy storage system at the site of its shuttered Liddell coal-fired power plant in the NSW Hunter Valley. The start of operations is targeted for mid-2026.
