The battery will store surplus energy from the grid. Credit: Phonlamai Photo/Shutterstock.

The New South Wales (NSW) government in Australia has approved the A$1bn ($647m) Mt Piper battery energy storage system (BESS) project being developed by EnergyAustralia.

With a capacity of 500MW/2,000 megawatt hours (MWh), the battery will store surplus energy from the grid when demand is low and discharge it during high-demand periods.

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The approval marks a significant step in NSW’s strategy to expand its network of large-scale batteries.

The expansion is critical to the state’s energy transition as coal-fired power generation is phased out.

Located near Lithgow, the Mt Piper BESS will leverage EnergyAustralia’s existing electricity infrastructure and play a vital role in ensuring a stable and reliable energy supply for NSW residents.

It will create 177 jobs during its construction phase.

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EnergyAustralia has committed up to A$2m ($1.2m) to the Lithgow City local government area through a voluntary planning agreement.

NSW Minister for Planning and Public Spaces Paul Scully stated: “With a A$1bn price tag, this battery is among the biggest in Australia. It stands ready to inject major capital investment, create jobs and provide Lithgow Council with A$2m to invest in local community projects.

“Large-scale batteries are crucial for our state’s energy future. They help store renewable energy, making sure that we have a reliable power supply even when the sun isn’t shining or the wind isn’t blowing.

“This project not only supports our transition to cleaner energy but it also strengthens our energy security and resilience. Investing in these batteries means a more sustainable and dependable energy system for everyone.” 

In November 2024, AGL Energy received approval from the NSW government to build the A$1bn Tomago BESS in Newcastle. Located near Raymond Terrace, it will power 200,000 homes during peak demand periods.