Integrated electricity generator Origin Energy has reached a final investment decision (FID) on the first stage of a large-scale battery at the Eraring Power Station in Eraring, Australia.
The company is committed to investing about A$600m ($403m) and has executed agreements for the supply and construction of the battery project.
The scope of works under the first stage of the Eraring battery project includes the construction of a 460MW battery storage system with a dispatch duration of two hours.
The company has the option to increase the battery to 700MW and four hours of dispatch duration in the future.
Construction works at the project are planned to commence within a few weeks and are expected to be operational in the fourth quarter of 2025.
Origin CEO Frank Calabria said: “Approval of the Eraring battery is an important milestone for Origin and another significant step in our strategy to lead the energy transition and accelerate renewable energy and storage in our portfolio.
“We are pleased to make this significant capital investment in Origin’s first major battery project to support the growth in renewable energy that’s occurring across the NEM, together with the expansion of our own portfolio of renewable energy developments.”
The FID on the first stage of the Eraring battery project follows an initial planning approval from the NSW Department of Planning and Environment, received in May last year.
Origin has selected Finnish technology group Wärtsilä for the supply of battery equipment, and Enerven, a subsidiary of SA Power Networks for the design and construction services.
Eraring is the company’s only, and largest coal-fired power plant in Australia, which addresses about a quarter of the energy consumption in the New South Wales region.
In February last year, Origin informed the Australian Energy Market Operator about its plans for the retirement of the Eraring coal-fired power station, seven years earlier than its scheduled life.
The facility will be shut down in 2025, after a three- and half-year notice period, as an increase in wind and solar power has made the plant uneconomic to run, said the Australian energy company.
Origin energy supply and operations head Greg Jarvis said: “Eraring is a strategic site with high-quality connection infrastructure enabling us to deliver energy into major demand centres.
“Development of the Eraring battery is a key next step as we look to transform the Eraring site for the future, given our intention to exit coal-fired generation by as early as August 2025.
“We are grateful for the strong support Origin has received from the local community and other stakeholders, and we look forward to working with our key contractors to deliver the Eraring battery safely and expeditiously.”
