Australian distribution network operator, Ausgrid, along with Plus Grid Storage, a separate commercial entity that will build and operate the project, has begun construction on the 200 MW / 400 MWh Steel River East battery energy storage system (BESS) in Newcastle, New South Wales, some 200 kilometers north of Sydney.
The project is located at the Steel River Industrial Estate in the city of Newcastle, and will consist of 112 Tesla Megapack 2XL lithium-ion battery units. It will connect to Ausgrid’s 132 kV zone substation via a 33 kV underground cable.
Construction approval was granted in March 2026 by the NSW Independent Planning Commission (IPC). It was initially referred to the IPC due to 61 public objections being made to the Department of Planning, Housing and Infrastructure (DPHI) during the assessment period.
Plus Grid Storage is a partnership between the NSW government, IFM investors, APG Group, and AustralianSuper. The company announced the start of construction on LinkedIn.
“This is an exciting step forward for PLUS Grid Storage as we move into delivery on our first project, reflecting the hard work of our team, project partners and stakeholders. Steel River East BESS will play an important role in supporting a more reliable and resilient electricity network by storing excess energy when demand is low and dispatching it back to the grid when it is needed most,” the post said.
The Steel River East BESS is expected to be operational by late 2027.
Homebush BESS secures planning approval
Ausgrid’s 200 MW / 400 MWh Homebush BESS, to also be developed by Plus Grid Storage, secured planning approval earlier in the month.
The project is located 15 kilometers west of Sydney’s CBD in New South Wales. It will be adjacent to the existing 132 kV Mason Park sub-transmission switching station. Homebush will also be using the same Tesla Megapack 2XL units as Steel River East.
“We’re proud to be progressing a pipeline of strategically located storage projects that will strengthen the electricity network and support homes, businesses and communities across NSW,” said Kelly Wood, Ausgrid executive in charge of Plus Grid Storage.
Plus Grid Storage said that “an additional six projects are progressing through the NSW planning system.” Once complete, the company will have around 1 GW of battery storage capacity, with a 2031 target being set.
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