Storage

AGL gets federal green tick for big battery in coal country, with conditions to protect local legless lizard

Published by

AGL Energy’s plans to build another battery energy storage system (BESS) in New South Wales coal country have been granted environmental approval by the federal government, subject to conditions including to minimise impacts on an endangered legless lizard that is endemic to the area.

The 150 megawatt (MW) and 300 megawatt-hour (MWh) Muswellbrook Battery was given the all-clear to go ahead late last week in a notice published on the federal government’s EPBC portal, after being submitted for assessment in January.

AGL says the project, which has secured state development approval, is planned for construction in Muswellbrook, to the west of the existing Muswellbrook Ausgrid substation.

The company notes that since gaining state approvals back in July 2023, the project team identified the need to lodge a modification application, making several minor changes, including to the approved layout plan and to better reflect the final Aboriginal heritage site extent revealed through additional investigations.

One of the main conditions for last week’s EPBC approval has been centred around protection of the Hunter Valley Delma – an endangered legless lizard that inhabits a 25 km wide corridor in the Hunter Valley, between Maitland and Muswellbrook.

These conditions include to avoid and mitigate impacts to the delma, and to compensate for residual impacts to delma habitat through an Offset Strategy that must be approved by the federal environment minister before any works begin.

In the Hunter, AGL still operates the more than 40-year old 2,75 MW Bayswater coal-fired power station that currently supplies around 20 per cent of New South Wales’ electricity demand. It is scheduled for closure by 2033.

To replace the exiting coal, AGL is AGL is developing a number of projects in the region, including a 500 MW / 1,000 MWh battery at its retired Liddell Power Station site and a 500 MW / 2,000 MWh BESS at the Tomago Industrial Estate, that’s due to be completed next year

AGL is also developing a couple of pumped hydro projects in the region, including a project in Muswellbrook that proposes to ues an existing coal mine void to provide long-duration storage and generation.

The gentailer says on the project website that the Muswellbrook battery has the potential to improve the reliability and stability of the grid and to provide “socioeconomic outcomes” including local job opportunities.

The project is expected to provide up to 60 jobs during the construction phase and up to 3 full time jobs during operation. 

If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, please click here to subscribe to our free daily newsletter.

If you wish to support independent media, and accurate information, please consider making a one off donation or becoming a regular supporter of Renew Economy. Please click here. Your support is invaluable.

Sophie Vorrath

Sophie is editor of Renew Economy and editor of its sister site, One Step Off The Grid . She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.

Share
Published by
Tags: agl energy

Recent Posts

Giant “shock absorber” battery free to trade on market after coal closure delay leads to remade contract

Australia's most powerful battery now free to trade its full capacity on market after its…

10 October 2026

Look, no turbines! Natural landscape returns at site of decommissioned wind farm

The site of one of Australia's very first wind farms now shows little evidence of…

10 October 2026

Kudos where it’s due: Australia’s quiet role electrifying the rallying cry for the COP we never got to host

The "35 by 35" electrification goal has an Australian origin that the government seems to…

9 October 2026

The Queensland LNP plan for coal-powered data centres could cost taxpayers $20 billion a pop

If we fail to ensure data centres pay for new renewables and storage to cover…

9 October 2026

Home batteries and time-of-use tariffs may be best combination to steer households away from evening peaks

Home batteries look like resetting the behaviour of households when it comes to responding to…

9 October 2026

South Australia won’t reach its 100 pct net renewables target on schedule, but it won’t be the fault of households

South Australia energy minister hints that the 100 pct net renewables target may not be…

9 October 2026