Collie is set to have two large-scale battery energy storage systems, with French renewable energy company Neoen proceeding with construction of a 219 megawatt unit.
Collie is set to have two large-scale battery energy storage systems, with French renewable energy company Neoen proceeding with construction of a 219-megawatt unit.
Neoen has contracted Tesla and construction company UGL to commence work on its project.
It follows the Australian Energy Market Operator (AEMO) awarding Neoen a two-year capacity services contract, after a competitive tender initiated by the state government.
The Neoen battery is additional to the state government’s plan to fund its own battery.
Last month’s state budget included $2.3 billion in funding for construction of a new battery at Collie, with a capacity of up to 500 megawatts, and for an expansion of Synergy’s recently built battery at Kwinana.
Neoen has received development approval for a total of 1 gigawatts of battery storage at Collie, which implies it could bid to build the proposed 500MW battery for the government.
The French company has not disclosed the cost of its battery, which has a capacity of 219 MW, or 877 megawatt hours (MWh), meaning it can run for four hours.
However, it has previously said the entire 1GW (4GWh) Collie battery would cost in the region of $2 billion.
Another pointer to the likely cost comes from Synergy, which has been allocated $625 million to install an extra 200MW (800MWh) of storage capacity at Kwinana.
Neoen’s battery is expected to be operational by the end of 2024 and has been contracted to supply up to 197MW of power for up to four hours, charging during the day and discharging across the evening peak.
It is designed to boost the security and reliability of the South-West’s electricity grid during periods of peak demand, especially as the state moves away from coal-fired power to wind and solar power.
Energy Minister Bill Johnston said the investment by Neoen would complement the government’s own investments in battery storage.
“While the WA government is replacing its coal-fired energy capacity with renewable infrastructure through Synergy, it is also critical for the private sector to take up the opportunity of participating and benefitting from the State’s energy transition,” he said.
The Collie battery will be Neoen’s first 4-hour long duration battery, its first major project in Western Australia and its sixth big battery in Australia.
It already owns and operates the 300 MW Victorian battery in Geelong and the 150 MW Hornsdale battery in South Australia and has three other batteries under construction.
In addition, it plans a stand-alone battery with capacity of up to 200MW at Muchea, just north of Perth.
Neoen Australia CEO Louis de Sambucy said the company was delighted to have won the Collie contract.
“This is an exciting time for Neoen as it is our first major project in WA, and it also means we now have a big battery in five of the six Australian states,” he said.
“With our growing team in Perth and a strong pipeline of projects we look forward to playing an increasingly significant role in the state’s rapid decarbonisation.”
The Collie battery will consist of 224 Tesla Megapack 2XL units.
UGL will be responsible for the design, construction, testing and commissioning of the 33/330kV substation, the installation of the Tesla Megapacks and the associated infrastructure.
Managing director Doug Moss said UGL was well-established in the Australian renewable energy market.
“The Collie battery will be UGL’s sixth BESS project in recent years, and our third for Neoen following the successful design and construction of the Victorian Big Battery and the Western Downs battery which is currently under construction,” Mr Moss said.
“We look forward to continuing our relationship with Neoen and Tesla through the Collie battery project.”
The project is expected to create 120 construction jobs.
Western Power CEO Sam Barbaro said the government utility was working collaboratively with proponents to ensure it expedites the transition of the energy network to a sustainable system.
“Connecting renewable energy solutions, such as Neoen’s large scale battery, are critical to unlocking a cleaner energy future, that allows renewable resources to be effectively harnessed and utilised to meet the community’s power needs now and into the future,” Mr Barbaro said.
