Energy producer Neoen has commenced construction of the Muchea Battery, its third storage asset in Western Australia, and delivered Collie Battery Stage 2, bringing its total storage capacity in the State to 3,145 MWh. Together, these projects represent over AUD1bn ($650mn) of investment since 2022.
Located in Muchea, north of Perth, the new 164 MW / 905 MWh facility is Neoen’s first battery capable of delivering electricity continuously for six hours. The project has received notice to proceed from Tesla and contractor UGL, a subsidiary of CIMIC Group, and will connect to the South-West Interconnected System (SWIS) via Western Power’s Muchea substation.
Extended discharge capacity to meet peak demand
The Muchea Battery will be equipped with 252 Tesla Megapack 2XL units and is supported by the Australian Government’s Capacity Investment Scheme, aimed at strengthening grid reliability. Once operational, it will provide grid-stability and reliability services during evening peak demand. The construction phase will generate 70 local jobs and provide economic opportunities to surrounding communities over its 20-year operational life.
In parallel, Neoen has brought Collie Battery Stage 2 online, with a capacity of 341 MW / 1,363 MWh. Started less than 15 months ago, the project is now operational and is delivering a 300 MW four-hour capacity contract to the Australian Energy Market Operator (AEMO). This two-year contract helps offset the impact of coal plant retirements, growing rooftop solar generation, and increasing electricity demand.
Collie becomes Australia’s largest operational battery
With Stage 1 of the Collie Battery already in service (219 MW / 877 MWh), the combined site now reaches 560 MW / 2,240 MWh, equal to 20% of the average demand on the SWIS. It is the largest battery currently in operation in Australia and the first to exceed 2 GWh of capacity.
These developments strengthen Neoen’s position as a major player in Australia’s energy storage sector. The company now operates 724 MW / 3,145 MWh in the State and has a national portfolio of 1.7 GW / 5.1 GWh either operational or under construction.
Jean-Christophe Cheylus, Managing Director of Neoen Australia, praised the speed of project delivery and the partnerships with Tesla, UGL, Western Power and AEMO. Sam Barbaro, Chief Executive Officer of Western Power, highlighted the grid’s role in supporting such developments. Jai Thomas, Coordinator of Energy at Energy Policy WA, pointed to the local market’s ability to enable innovation in storage.
