Australian energy company AGL Energy has received approval from the New South Wales (NSW) government to construct a A$1bn (650.9m) battery energy storage system (BESS) in Newcastle.  

The development will play a crucial role in managing the city's energy requirements during peak demand periods. 

Located near Raymond Terrace, the Tomago BESS is expected to become one of the largest batteries in NSW, capable of powering 200,000 homes during periods of peak demand.  

The system will store energy from the grid when demand is low and release it as needed, enhancing the stability of the Hunter-Central Coast Renewable Energy Zone (REZ). 

The project is expected to create 200 jobs during the construction phase and provide six ongoing operational positions.  

AGL Energy has also committed A$2.2m to Port Stephens Council for community projects through a voluntary planning agreement. 

NSW Minister for Planning and Public Spaces Paul Scully stated: “With a $1bn price tag, this battery is one of the biggest in NSW and injects a major capital investment within the Port Stephens and Lower Hunter areas. 

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

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

The Tomago BESS project joins the state's expanding network of 57 approved large-scale batteries, designed to support the energy transition as coal-fired power plants are phased out. 

In 2023, AGL Energy announced a final investment decision on the 500MW Liddell battery project in New South Wales.