Independent power producer Neoen has announced the start of construction on Muchea Battery, its third storage site in Western Australia. With a capacity of 164 MW / 905 MWh, this project becomes Neoen’s first long-duration six-hour battery. The company notified its technical partners Tesla and UGL, part of the CIMIC Group, marking another step in its rapid deployment strategy on the South-West Interconnected System (SWIS).
Deployment supported by the Australian government
Muchea Battery is backed by the federal government under the Capacity Investment Scheme. It will be connected to the existing Muchea substation, operated by Western Power, and integrated into the south-western coast grid. The construction phase is expected to generate 70 jobs and bring local economic benefits exceeding AUD2mn ($1.27mn) over its more than 20-year operational period. The facility, comprising 252 Tesla Megapack 2 XL units, is part of the country’s efforts to strengthen grid stability during evening demand peaks.
Collie Battery becomes the largest facility in the country
At the same time, Neoen has commissioned the second stage of Collie Battery (341 MW / 1,363 MWh), also located in Western Australia. The capacity agreement with the Australian Energy Market Operator (AEMO), providing 300 MW over four hours, began as planned on October 1. This stage complements the first unit of Collie Battery (219 MW / 877 MWh), bringing the site’s total capacity to 560 MW / 2,240 MWh, a national record.
Cumulative investment surpasses AUD1bn
These projects bring Neoen’s total storage capacity in Western Australia to 724 MW / 3,145 MWh. Since 2022, cumulative investments in the region have exceeded AUD1bn ($636mn), confirming Neoen’s position as the leading operator of large-scale batteries in the country. The company’s Australian portfolio now stands at 1.7 GW / 5.1 GWh either operational or under development.
