AGL Energy has reached a final investment decision on the Liddell 500-megawatt grid scale battery in the Hunter Energy Hub in New South Wales (NSW).
The project will be supported by a $35 million grant awarded by the Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program, and a long-term service agreement arranged by AEMO Services on behalf of the NSW government.
The battery will be funded on AGL’s balance sheet, utilising operating cash flows and existing debt facilities.
AGL managing director and chief executive officer Damien Nicks said the final investment decision on the battery project is a significant milestone in the company’s decarbonisation pathway.
“We are excited to approve another major grid battery project in our development pipeline, supporting the local economy and creating energy transition jobs at our Hunter Energy Hub,” Nicks said.
“Importantly, the Liddell battery will be a key component of achieving our interim target of approximately 5-gigawatts of new renewables and firming capacity in place by 2030.”
The expected asset life of the battery is 20 years, according to the company.
Construction work is expected to begin in early 2024 with commencement of operations targeted for mid-2026.
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