The New South Wales (NSW) Department of Planning, Housing, and Infrastructure has granted development approval for EnergyAustralia’s Mt Piper battery energy storage system (BESS) project, valued at more than A$1bn ($650m).
Set to be built near Lithgow in NSW, the large-scale battery will have the capacity to store up to 500MW/2GWh of energy. This will be sufficient to power more than 200,000 homes when required.
At its full capacity, the BESS project will be capable of delivering energy for up to 320,000 homes and small businesses for four hours.
By storing surplus energy from the grid during off-peak times, the Mt Piper facility will provide a reliable supply of electricity during peak demand periods, such as mornings and evenings.
The Mt Piper BESS, which is said to be one of the largest in Australia, will utilise existing infrastructure on the south of Mt Piper power station site.
Construction is expected to begin in 2026, creating 177 jobs and injecting substantial economic benefits into the local Lithgow area.
According to the NSW government, the Mt Piper BESS facility will contribute to the state’s growing network of large-scale batteries that aim to advance the energy transition as the country phases out coal-based energy generation.
NSW Minister for Planning and Public Spaces Paul Scully said: “With a $1bn price tag, this battery is among the biggest in Australia.
“It stands ready to inject major capital investment, create jobs and provide Lithgow Council with $2m to invest in local community projects.
“Large-scale batteries are crucial for our state’s energy future. They help store renewable energy, making sure that we have a reliable power supply even when the sun isn’t shining, or the wind isn’t blowing.”
EnergyAustralia has committed up to A$2m ($1.3m) for community initiatives within the Lithgow City local government area as part of a Voluntary Planning Agreement.
In addition to the Mt Piper BESS, EnergyAustralia is progressing the Lake Lyell pumped hydro project, also located near Lithgow.
Recently declared as Critical State Significant Infrastructure (CSSI), the hydropower project has a proposed capacity of 335MW for up to eight hours, which could power 150,000 homes.
A decision on the Lake Lyell project’s development is expected in the second half of 2025.
