Neoen said it has started construction of the 305-megawatt/1220-megawatt-hour Stage 3 of the Western Downs Battery in Queensland, after issuing notices to proceed to Tesla and contractor UGL.
The announcement follows the completion of the 270-MW/540-MWh Stage 2, which lifts the operating capacity of the project’s first two stages to 540 MW/1080 MWh. Stage 3 will comprise 312 Tesla Megapack 2XL units with grid-forming capability and is expected to begin operating in the Australian summer of 2027/28, the company added.
Neoen said Stage 2 was delivered ahead of schedule to support its virtual battery agreements with AGL Energy and Shell Energy. The developer has also signed two new virtual battery contracts with Engie—one for 25 MW/50 MWh backed by Stage 2 and another for 50 MW/200 MWh backed by Stage 3.
According to Neoen, the first two stages are already providing grid-reliability, frequency and firming services to the National Electricity Market, with both equipped with grid-forming inverters. Once Stage 3 enters operation, Western Downs Battery will have total storage capacity of 845 MW/2.3 GWh, contributing to Queensland’s energy transition. The latest milestone brings Neoen’s Australian battery storage portfolio to 2 GW/6.4 GWh either operating or under construction.
“I congratulate the team on achieving these milestones,” said Jean-Christophe Cheylus, Neoen Australia’s chief executive. “The launch of this new 4-hour battery at Western Downs further highlights Neoen’s innovation and leadership in big batteries and takes us past 2 GW of storage capacity in Australia.” He added, “We’re delighted to have signed two new contracts with Engie, and I thank them for placing their trust in us once more. Stage 3 of Western Downs Battery is our 7th storage project with Tesla and UGL and we look forward to switching it on together soon.”
