Neoen has announced the launch of construction of the third stage of the Western Downs battery storage facility, located in the state of Queensland, Australia. With a capacity of 305 MW and 1,220 MWh, this new stage will bring the site’s total capacity to 845 MW and 2.3 GWh once operational. The project is based on 312 Megapack 2XL units supplied by Tesla, with deployment handled by UGL, a subsidiary of the CIMIC Group. Commissioning is scheduled for the Australian summer of 2027/28.
Western Downs reaches 1,080 MWh of operational capacity
At the same time, Neoen has completed construction of the second stage of the battery, with a capacity of 270 MW and 540 MWh. Delivered ahead of schedule, this facility is already in use under virtual battery agreements signed with AGL Energy and Shell Energy. These agreements allow clients to operate the battery without having to build their own storage infrastructure.
With this commissioning, the site’s current capacity reaches 540 MW and 1,080 MWh, spread over the first two stages. The entire facility provides essential services for grid stability and frequency regulation for the Australian National Electricity Market. The batteries are equipped with grid-forming inverters, supporting their integration into Queensland’s existing power grid.
Two new virtual contracts signed with ENGIE
Neoen has also signed two new virtual battery contracts with ENGIE. The first, with a capacity of 25 MW and 50 MWh, will be provided by the second stage currently in service. The second, of 50 MW and 200 MWh, will go live with the commissioning of the third stage. These contracts enable ENGIE to increase its flexibility in managing the variability of its renewable assets.
Under the terms of these agreements, ENGIE can virtually charge and discharge the battery to optimise its client supply. These partnerships strengthen ENGIE’s battery solutions portfolio without requiring direct investment in infrastructure.
Neoen’s total capacity reaches 2 GW in Australia
With the third stage under construction, Neoen reaches a total storage capacity of 2 GW and 6.4 GWh across its Australian assets. This makes the company the largest operator of battery facilities in the country. The Western Downs Green Power Hub site also includes a 460 MWp solar farm already in operation.
The project’s progress relies on the use of existing infrastructure, including grid connection via Powerlink’s substation. The project is being developed in collaboration with Tesla and UGL, regular partners of Neoen for storage projects in Australia.
