The newly established New South Wales Energy Security Corporation (ESC) will invest AU$100 million into a large-scale battery platform across Sydney, Newcastle, and the Hunter Central Coast.
The state government created the state-backed clean energy investor to accelerate co-investment in critical storage infrastructure, aiming to reinforce grid reliability and place downward pressure on power bills as NSW’s ageing coal-fired power stations retire.
With flexible financing tools, the ESC helps close investment gaps and move priority projects forward.
This inaugural investment will back an ambitious battery network delivered by PLUS Grid Storage, an independent entity within the Ausgrid Group.
The overarching platform is projected to scale up to 1 gigawatt (GW) of capacity by 2031, with the initial phase funding four distinct large-scale batteries. Combined, the four projects will hold enough capacity to power up to 118,000 homes daily.
Construction on the first project, a 200-megawatt (MW) battery at the Steel River Industrial Estate in Newcastle, is scheduled to kick off in July.
A second 200 MW facility is set for Homebush in Sydney, followed by two additional installations of 100 MW and 150 MW.
The first 500 MW of storage is expected to be fully operational by early 2029, timed to coincide with impending coal generator retirements.
NSW Minister for Climate Change and Energy Penny Sharpe said the investment is critical to fast-tracking infrastructure where it is needed most.
“Large-scale batteries are revolutionising NSW’s energy grid, delivering greater energy security and helping to drive down prices,” Sharpe said.
ESC CEO Paul Peters noted that the decision to back PLUS Grid Storage hinged on the platform’s ability to utilise existing network infrastructure, accelerating delivery while minimising community impact.
“This is a platform investment in one of the state’s most critical load centres, where demand is highest, land is constrained, and the need for storage is most immediate,” Peters said.
“PLUS Grid Storage’s ability to deliver these projects by 2029, while making better use of existing infrastructure, were critical factors in our decision to invest in this battery platform.”
