French renewable energy developer Neoen has clinched a significant contract from the Australian Energy Market Operator (AEMO) to expand its Collie Battery project in Western Australia. The contract, valued at 300MW/four-hour capacity services, was awarded through a competitive tender initiated by the Western Australian Coordinator of Energy.
Stage 2 of the Collie Battery project is set to deliver a substantial storage capacity of 341MW/1363 MWh, comprising 348 Tesla Megapack 2 XL units. Located near the town of Collie in Western Australia, the project is strategically positioned to connect to Western Power's new Palmer Terminal substation within the South-West Interconnected System.
Neoen has initiated construction proceedings by issuing notices to proceed to Tesla and construction contractor UGL. The completion of Stage 2 is anticipated by the fourth quarter of 2025.
This development follows the ongoing construction of Stage 1 of the Collie Battery project, which secured a similar contract from AEMO in June 2023. Stage 1, with a capacity of 219MW/877MWh, is on track to commence operations by the fourth quarter of 2024.
The contract with AEMO for Non-Co-optimised Essential System Services is set to run for a period of two years from October 1, 2025. Stage 2 of the Collie Battery project will contribute 300MW of storage capacity for four hours of discharging during the evening peak, addressing concerns raised by AEMO regarding the retirement of coal power plants, the proliferation of rooftop solar installations, and the escalating energy demand in Western Australia.
Louis de Sambucy, Chief Executive of Neoen Australia, expressed gratitude for the opportunity, stating, “We are thrilled to have won this second NCESS contract and would like to thank AEMO, Western Power, and the WA Government for their continued trust.”
Jai Thomas, Energy Policy WA's Coordinator of Energy, emphasized the significance of the project in advancing towards a more sustainable energy landscape, remarking, “The Stage 2 Collie Battery project is another important step toward a greener and more resilient power system, made possible by the NCESS process administered by AEMO, created as part of the Western Australian Government's Energy Transformation Strategy.”
Neoen's latest contract win further solidifies its position as the leading developer, owner, and operator of renewable energy assets in Australia. With a total asset portfolio of 4GW in operation or under construction, the company continues to play a pivotal role in driving the country's transition towards cleaner energy sources.
