EXECUTIVE SUMMARY
A 150 MW/300 MWh battery expansion at Hazelwood in Victoria, Australia, has reached financial close, ENGIE announced on 16 October 2026. The development will increase the site's total battery capacity to 300 MW/450 MWh. Construction is scheduled to begin later in 2026, with commercial operations targeted from 2028.
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French multinational energy company ENGIE announced on 16 October 2026 that it had reached financial close on the 150 MW/300 MWh Hazelwood Battery Energy Storage System expansion (HBESS 2) in Victoria, Australia. The development marks another milestone in transforming the former Hazelwood Power Station site and supporting Australia's energy transition.
The expansion will add 150 MW/300 MWh of battery storage capacity to the existing Hazelwood facility, which has operated since 2023 with a capacity of 150 MW/150 MWh. Once completed, the site's total installed battery capacity will increase to 300 MW/450 MWh, strengthening its role in supporting Victoria and the National Electricity Market (NEM).
According to ENGIE, the expansion is supported by strong customer demand for battery energy storage. Battery storage can store low-cost solar generation during the day and dispatch electricity during periods of higher evening demand. This capability supports renewable energy integration and provides additional flexibility to the electricity system.
Laura Caspari, CEO and Managing Director of Renewables and Batteries at ENGIE ANZ, highlighted the contribution of the existing Hazelwood Battery to the electricity system. She said the expansion would build on the existing facility's success while making use of existing infrastructure. The additional storage capacity will also support renewable energy growth across Victoria ahead of the planned closure of the Yallourn Power Station.
The development forms part of the broader transformation of the former Hazelwood Power Station site, which closed in 2017. Since its closure, significant progress has been made on site rehabilitation alongside the development of new energy infrastructure. The Environment Effects Statement (EES) process for the mine rehabilitation project is well advanced and on public exhibition.
ENGIE aims to create enduring assets that benefit the local community, strengthen Victoria's energy security and support the broader energy transition. The company's ambition extends beyond rehabilitating the former power station site.
Construction will be delivered by project partners Sungrow and Elecnor. Sungrow will supply the battery technology, while Elecnor will deliver balance-of-plant and associated infrastructure works. ENGIE confirmed that key contracts have been executed, with construction scheduled to commence later in 2026.
Commercial operations are targeted from 2028, following the planned construction of the additional 150 MW/300 MWh battery storage system.