Engie has announced the successful financial close for a major expansion of the Hazelwood battery energy storage system (BESS) built at the site of the retired Hazelwood coal-fired power station in the Australian state of Victoria.
The milestone comes after Victorian Energy Minister Jaclyn Symes last week named Hazelwood BESS Line Co. Pty. Ltd. a “Declared Transmission System Operator,” allowing the project to use existing transmission infrastructure. As an established power generation site, Hazelwood has access to 1.6 GW of transmission capacity.
The expansion will add a 150 MW/300 MWh BESS to the Hazelwood site, building on the existing 150 MW/150 MWh battery that was developed by Engie and storage specialist Eku Energy and has been operating since 2023. Engie secured complete ownership of the Hazelwood BESS earlier this year, acquiring Eku Energy’s 30% stake.
Symes said the project will increase the site’s total installed battery capacity to 300 MW/450 MWh, reinforcing Hazelwood’s role as a major source of flexible energy infrastructure for Victoria and the National Electricity Market (NEM).
“The expansion of the Hazelwood Battery Energy Storage System is another important step in Victoria’s energy transition, helping to store more of our abundant clean, renewable energy,” she said.
Laura Caspari, chief executive officer and managing director of renewables and batteries at Engie Australia, said the expansion is underpinned by strong customer demand for battery storage, driven by its ability to store low-cost solar generation during the day and dispatch it during periods of higher evening demand.
“The Hazelwood battery has already demonstrated the value that energy storage can bring to the electricity system,” she said. “Expanding the facility allows us to build on that success while making use of existing infrastructure, enabling the continued growth of renewable energy across Victoria,”
Chinese inverter and storage system manufacturer Sungrow has been tapped to supply the battery technology for the project, while Spanish infrastructure development group Elecnor will deliver the balance-of-plant and associated infrastructure works.
Engie said key contracts have been executed, with construction commencing later this year and commercial operations targeted from 2028.
The project is expected to generate up to 370 jobs during the construction phase.
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