FYI: Tesla secures a $133 million deal to double the size of Queensland, Australia’s Western Downs battery storage project.
Tesla Gains Major Megapack Contract for Western Downs Expansion in Australia
Tesla has landed a significant new contract to expand its energy storage footprint in Australia. The agreement will fund the expansion of the Western Downs battery in Queensland, increasing its capacity to an impressive 540 MW / 1,080 MWh.
Expansion Plans and Details
The latest contract, detailed by Renew Economy, mandates the provision of 140 Megapack units from Tesla, with an estimated value of approximately $133 million. This impressive expansion is scheduled to go live by 2026.
Currently operated by French renewable energy giant Neoen under a 10-year agreement with AGL Energy—Australia’s largest coal generator—the Western Downs battery will receive a substantial boost. This enhancement positions it as the largest battery project in Queensland, for now.
AGL Energy’s Chief Operating Officer, Markus Brokhof, praised the expansion’s potential impact:
“The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” said Brokhof. “Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”
Neoen’s Expanding Role in Australia’s Energy Storage
Neoen’s CEO, Xavier Barbaro, highlighted the company’s pivotal role in advancing battery storage projects across Australia.
“Neoen is proud to have developed the ‘virtual battery’ offer in Australia, providing a bespoke, smart, value-added product that meets the increasing needs of our customers,” Barbaro stated. “Over the past seven years, Neoen has been a leading player in storage in Australia and around the world, and we will continue to design and deliver integrated solutions to accelerate the energy transition.”
From the data available, Neoen currently operates 1,925 MW / 4,709 MWh of energy storage capacity across Australia, either in operation or under construction.
Future Projects on the Horizon
While the Western Downs expansion is now Queensland’s largest battery project, this title might soon be claimed by the Stanwell battery project, also in Queensland. This upcoming project will expand its current system to 300 MW / 1,200 MWh, promising to be the state’s most sizable energy storage system. This initiative has secured a $448.2 million investment from the Queensland government and is poised to outpace other projects, being constructed near a coal plant slated for closure.
Tesla’s Growing Presence in Australia
Australia continues to be a significant region for Tesla’s Megapack projects. The company has several energy storage sites scattered across New South Wales, Victoria, and Western Australia, further solidifying its commitment to renewable energy solutions.
For more insights and updates, reach out to us at tips@automotive.fyi, or follow us on Twitter @automotivefyi.
William Kouch, Editor of Automotive.fyi
