A new big battery is on track to be built in Victoria’s Latrobe Valley after the proposed Morwell battery energy storage system (BESS), with a capacity of up to 1 gigawatt (GW) and four hours of storage, secured development approval from the Victorian government this week.
The $1.3 billion Morwell BESS was originally developed by Australian renewable energy developer Ace Power before it was acquired in mid-2025 by Portuguese clean energy company TagEnergy.
TagEnergy’s said this week that it had secured approval from the state department of transport and planning for a project “of up to 1000MW/4000MWh” – enough to power more than 344,000 homes for four hours during periods of peak demand.
The project is set to be built in Hazelwood North, 500 metres up the road from the 500kV Hazelwood Terminal Station which it will connect into when completed.
TagEnergy, which is building the country’s biggest wind farm at Golden Plains (1.33 GW) will now progress with the next stages of development, including securing a grid connection agreement and completing the final activities necessary to support the project’s delivery.
The company currently 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, who welcomed the project’s 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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