Plans to build a massive new stand-alone battery, with a capacity of up to 1 gigawatt (GW) and four hours of storage (4 gigawatt hours) in the heart of Victorian coal country in the Latrobe Valley, have been submitted for federal environmental approval.
The $1.3 billion Morwell battery energy storage system (BESS) was originally put forward by Australian renewable energy developer Ace Power before the project was acquired in mid-2025 by Portuguese clean energy company TagEnergy.
In June this year, TagEnergy announced that it had secured state development approval for the project “of up to 1000MW/4000MWh” – enough to power more than 344,000 homes for four hours during periods of peak demand.
The battery project, which would be among the biggest in the country when built, and bigger than any completed project to date, will be located at Hazelwood North, 500 metres up the road from the 500kV Hazelwood Terminal Station, into which it will connect.
The huge new battery is one of a number of big batteries being built in the Yallourn Valley, and elsewhere in the state, and will be needed as the remaining fleet of coal power plants prepare to retire, starting with Yallourn in 2028.
According to documents referred to the EPBC, engagement with community and key stakeholders at Morwell BESS started in the second half of 2025, while engagement with Indigenous Stakeholders has occurred since 2020.
The documents describe the proposed project site as having been “historically cleared … [and] currently used for grazing.” The report says that more than 90% of the paddock is made up of exotic grass species and environmental weeds.
The wider landscape within 5 km of the project area is described as “a mosaic of different land uses, with the dominant use being agriculture.”
The decommissioned Hazelwood and Morwell coal fired plants and open cut mines are around 2.5 km west of the proposed BESS and are characterised by extensive excavations and cooling ponds. Towns Morwell and Churchill sit 3.5 km and 2 km south of the project site, respectively.
TagEnergy, which has recently completed construction of what is currently Australia’s biggest wind farm at Golden Plains (1.33 GW), and is building a battery next to that, says it will now progress with the next stages of development for the Morwell BESS, including securing a grid connection agreement and completing the final investment decision.
The company in June said it expects to reach financial close on the project by the end of next year, with construction to take approximately 18 to 24 months shortly thereafter, before entering operation in late 2029.
“Victoria’s electricity system is changing rapidly and battery storage will be essential to ensure reliable power remains available as demand continues to grow and new sources of generation come online,” said Andrew Riggs, managing partner for Australia at TagEnergy, of the project’s state approval.
“Projects like Morwell BESS help ensure electricity is available when and where it is needed most, providing the flexibility required to support a modern and resilient electricity system.
“The Latrobe Valley has been at the centre of Victoria’s electricity system for generations. Morwell BESS will help ensure the region remains a vital part of the state’s energy landscape for decades to come.”
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