The Victorian government is supporting Gippsland’s clean energy transition by taking an important regulatory step towards expanding the Hazelwood battery energy storage system (BESS).
Minister for Energy and Resources Jaclyn Symes announced that Hazelwood BESS Line Co Pty Ltd has been designated a Declared Transmission System Operator.
The formal declaration enables the project to reach financial close by granting access to existing transmission infrastructure at the former coal-fired power station site.
The expansion will add a 150-megawatt battery with 300 megawatt-hours of storage to the initial facility commissioned by ENGIE in 2023. Once operational, the development will double the site’s total power capacity to 300 megawatts.
The combined storage capability will store enough renewable electricity to power approximately 500,000 homes for up to 90 minutes during periods of high demand, strengthening grid reliability across Victoria.
Slated for completion in 2028, the expansion is set to create up to 370 construction jobs, delivering significant economic benefits to local trades and businesses across the region.
“The expansion of the Hazelwood Battery Energy Storage System is another important step in Victoria’s energy transition, helping to store more of our abundant clean, renewable energy,” Symes said.
“We’re backing Gippsland’s energy future with more local jobs, more renewable energy and the storage Victoria needs to keep the lights on.”
Member for Eastern Victoria Tom McIntosh said transforming the former coal site into a clean energy hub builds directly on local infrastructure strengths while supporting regional employment.
The initiative forms part of the broader Victorian Energy Jobs Plan, which aims to create 68,000 energy jobs by 2040, with 37 per cent located in regional Victoria.
Between 2026 and 2040, the sector is expected to deliver more than AU$18 billion in wages to regional communities, including $4.62 billion specifically directed to Gippsland’s workforce.