The Collie battery expansion is set to become Australia’s largest energy storage site, serving a two-year storage contract starting in October 2025. This expansion was awarded to French firm Neoen after a competitive tender run by the Australian Energy Market Operator (AEMO), which manages the power grid in south-west Western Australia. The first stage of Neoen’s battery at Collie is currently under construction, with plans for completion by December 2024. This investment has been welcomed by Kate Ryan, the AEMO manager for WA, who sees the Collie battery playing a crucial role in supporting the state’s energy transition as it moves away from coal-fired generation.
The WA government’s 2023 budget allocated $2.8 billion towards energy storage, wind generation, and upgrades to the transmission system. The state’s energy supply to the populous south-west region is becoming more complex as demand increases, rooftop solar panels continue to be installed, creating a midday power supply peak that is challenging to manage, and progress on new wind farms has been slow. To address these challenges, significant amounts of additional renewable and gas generation will be needed before the closure of the last two coal-fired power plants owned by state generator Synergy in 2027 and 2029. The Collie battery expansion by Neoen is seen as a step towards meeting these energy needs and facilitating the transition away from coal.
Neoen, the French firm behind the Collie battery expansion, has a track record of operating grid-scale batteries in Australia. They currently operate the original grid-scale battery at Hornsdale in South Australia and the Victorian Big Battery. The Collie battery is set to be capable of charging or discharging 200 megawatts over four hours, providing significant energy storage capacity. This investment by Neoen in expanding their battery storage capacity at Collie demonstrates their commitment to supporting Australia’s energy transition and their expertise in grid-scale battery operations.
The importance of the Collie battery in WA’s energy transition cannot be overstated, with the need to navigate a changing energy landscape as coal-fired generation retires. The Collie battery will help to address the challenges posed by the increasing complexity of the state’s energy supply, including managing midday power supply peaks and integrating more renewable energy sources into the grid. The investment by Neoen in expanding the Collie battery highlights the critical role that energy storage plays in enabling the transition to a more sustainable and reliable energy system.
As the largest energy storage site in Australia, the Collie battery expansion by Neoen represents a significant step forward in supporting WA’s future energy needs. With the state’s focus on renewable energy sources and the closure of coal-fired power plants on the horizon, investments in energy storage infrastructure like the Collie battery are essential for ensuring a smooth transition to a more sustainable energy system. The Collie battery expansion is a testament to the commitment of companies like Neoen to driving innovation and progress in the energy sector, and will play a crucial role in shaping the future of energy generation and storage in Western Australia.
