Neoen has started construction of the 305 MW / 1,220 MWh Western Downs Battery Stage 3 in Queensland, expanding its Western Downs Green Power Hub. Following the early completion of Stage 2, total capacity across all stages will reach 845 MW / 2.3 GWh. The grid-forming battery provides reliability, frequency control, and firming services in the National Electricity Market, supported by virtual battery agreements with ENGIE, AGL Energy, and Shell Energy.
DATA SNAPSHOT
| Field | Value |
|---|---|
| Project | Western Downs BESS (Stage 3) |
| Developer / Owner | Neoen |
| Capacity | 305 MW / 1,220 MWh (4-hours) |
| Total Capacity (All Stages) | 845 MW / 2.3 GWh |
| Operational Capacity | 540 MW / 1,080 MWh (stage 1 & 2) |
| Technology Supplier | Tesla (Megapack 2XL) |
France-based renewable power producer, Neoen has launched the construction of 305 MW/1,220 MWh Western Downs Battery Energy Storage Stage 3 in Queensland, Australia. The project represents Neoen’s fourth asset within the Western Downs Green Power Hub, a large-scale renewable energy precinct combining solar generation and battery storage.
The Western Downs Battery Stage 2 with 270 MW/540 MWh storage capacity has been completed ahead of schedule. Together with stage 1, total operational capacity has reached to 540 MW / 1,080 MWh. These stages are delivering frequency control, firming, and grid reliability services to Australia’s National Electricity Market. Both stages are equipped with grid-forming inverters, allowing the batteries to contribute to system stability traditionally provided by synchronous generators.
In parallel, Neoen has issued notices to proceed to Tesla, the battery storage technology supplier, and UGL, the balance of plant contractor and a member of the CIMIC Group, for the construction of Stage 3. The new stage will add 305 MW/1,220 MWh of storage capacity and is designed as a four-hour duration system. Stage 3 will consist of 312 Tesla Megapack 2XL units and will be equipped with grid-forming capability. The facility connects to Powerlink’s Western Downs substation, using existing grid infrastructure within the Western Downs Green Power Hub. Initial operations are scheduled to start during the Australian summer of 2027/28.
The expansion is supported by a series of virtual battery agreements, which allow counterparties to access battery capacity through financial and operational arrangements without owning physical assets. Neoen has signed two new virtual battery contracts with ENGIE. One agreement covers 25 MW/50 MWh of storage capacity and is designed as a two-hour duration system and is supported by Stage 2, while the second covers 50 MW/200 MWh with two-hour duration system and will be supported by Stage 3. These contracts add to existing virtual battery arrangements with AGL Energy and Shell Energy, which are already linked to the earlier stages of the Western Downs Battery.
Once operational, the combined Western Downs Battery will reach 845 MW/2.3 GWh of storage capacity across all three stages. This scale positions the project among the largest battery installations connected to Australia’s electricity system. The Western Downs development contributes to Neoen’s wider battery portfolio in the country, increasing its total battery storage capacity in Australia to 2 GW/6.4 GWh either operating or under construction.
Jean-Christophe Cheylus, CEO of Neoen Australia, said the project milestones include the launch of a four-hour battery at Western Downs and the execution of two additional virtual battery contracts with ENGIE. He also noted that Stage 3 represents Neoen’s seventh storage project delivered with Tesla and UGL, and acknowledged the involvement of Powerlink, AEMO, the local community, and the Western Downs Regional Council.
Jules Dufournier, Head of Energy Management and B2B at ENGIE Australia, said that the agreements expand ENGIE’s contracted virtual battery capacity and support its energy management and customer supply activities.
Xavier Barbaro, Group CEO of Neoen, said that the Western Downs expansion supports the planned development of a site targeting 1.3 GW of combined solar and storage capacity, with the virtual battery model serving as a reference for potential applications in other regions.