French energy giant Engie has begun work on the expansion of the Hazelwood battery, after reaching financial close last week and securing an electricity transmission licence that will allow the project to use existing transmission infrastructure.
Victoria’s minister for energy and resources Jaclyn Symes announced late last week that the government had approved Hazelwood BESS Line’s request for a license to transmit electricity in Victoria, known as a Declared Transmission System Operator.
The announcement was followed by news from Engie itself that it has begun work on the expansion after reaching financial close on the project. It also comes just weeks before the government goes into caretaker mode before the state election in late November.
The Hazelwood battery is a 150 megawatt (MW) one-hour battery that was built in 2023 by Engie and storage specialist Eku Energy, the first in the Latrobe Valley.
It was the first battery project for both companies and was built on the site between the old Hazelwood coal mine pit and the decommissioned power plant in Gippsland that was owned by Engie and was ranked as the most polluting in the country before its closure.
Engie secured complete ownership of the battery project earlier this year, acquiring Eku Energy’s 30 per cent share.
The expansion would double its power capacity and treble its storage capacity, adding a further 150 MW/300 megawatt-hours (MWh) to the existing battery.
Laura Caspari, CEO and Managing Director of Renewables and Batteries at Engie ANZ, said the expansion is underpinned by strong customer demand for battery storage, and its ability to store low-cost solar generation during the day and dispatch it during periods of higher evening demand.
“The Hazelwood Battery has already demonstrated the value that energy storage can bring to the electricity system,” she said in a statement.
“Expanding the facility allows us to build on that success while making use of existing infrastructure, enabling the continued growth of renewable energy across Victoria, and providing additional capacity ahead of the planned closure of the Yallourn Power Station.”
The battery is being built by Elecnor and supplied by Sungrow.
“The expansion of the Hazelwood Battery Energy Storage System is another important step in Victoria’s energy transition, helping to store more of our abundant clean, renewable energy,” said Symes.
“We’re backing Gippsland’s energy future with more local jobs, more renewable energy, and the storage Victoria needs to keep the lights on.”
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