AGL Energy to build A$1bn battery storage system in Newcastle

AGL Energy has secured approval from the New South Wales (NSW) government to construct a A$1 billion battery energy storage system (BESS) in Newcastle. 

Located near Raymond Terrace, the Tomago BESS will be one of the largest batteries in NSW, capable of powering 200,000 homes during peak demand periods.

The project will store energy from the grid when demand is low and release it when needed, enhancing the stability of the Hunter-Central Coast Renewable Energy Zone (REZ). Construction is expected to create 200 jobs, with six ongoing operational positions.

AGL Energy has also committed A$2.2 million (Rs 143 million) to community projects through a voluntary planning agreement with Port Stephens Council.

NSW Minister for Planning and Public Spaces Paul Scully emphasized the importance of large-scale batteries for energy security and renewable energy integration, stating, “Investing in these batteries means a more sustainable and dependable energy system for everyone.”

The Tomago BESS joins a growing network of 57 approved large-scale batteries in NSW, supporting the state’s transition away from coal-fired power plants.