The Victorian Government has taken a step towards the expansion of the Hazelwood Battery Energy Storage System reaching financial close, with Minister for Energy and Resources Jaclyn Symes announcing on Friday, 16 October 2026, that the Government has declared Hazelwood BESS Line Co Pty Ltd a Declared Transmission System Operator.

Declared Transmission System Operator Status Announced

The designation allows the project to use existing transmission infrastructure at the former Hazelwood Power Station site in Gippsland.

The announcement was made under the Carroll Labor Government, which the Premier's statement describes as backing more energy jobs in Gippsland and helping deliver the major battery expansion at the former power station site.

Doubling Capacity to 300 Megawatts

The expansion will add a 150-megawatt battery with 300 megawatt-hours of storage to the existing battery at the site, which was commissioned in 2023.

Once complete, the expansion will double the site's power capacity to 300 megawatts, with combined storage sufficient to power 500,000 homes for up to 90 minutes.

The expanded battery is designed to store more renewable energy and supply electricity when demand is high, which the Government says will help keep Victoria's grid reliable and support a more reliable renewable electricity system.

Construction Jobs and Timeline

The project is expected to create up to 370 construction jobs, supporting local workers and businesses across Gippsland. It is expected to be completed in 2028, strengthening Victoria's energy security, according to the Government's announcement. Built on the former Hazelwood Power Station site, the project will make use of existing electricity connections and infrastructure.

The Government says the expansion will help transform Hazelwood into a clean energy hub, supporting Gippsland's transition to renewable energy. Member for Eastern Victoria Tom McIntosh said the expansion will create up to 370 construction jobs while transforming the former Hazelwood Power Station into a clean energy hub.

Part of the Victorian Energy Jobs Plan

The project forms part of the Victorian Energy Jobs Plan, which the Government says will deliver 68,000 energy jobs, with 37 percent of those located in regional Victoria.

Under the plan, more than USD 12.54 billion in wages will be delivered to regional communities for workers with university, tertiary, or high-school-level qualifications between 2026 and 2040, including USD 3.22 billion in Gippsland.

Minister's Comments

Minister Symes said the expansion of the Hazelwood Battery Energy Storage System is another important step in Victoria's energy transition, helping to store more of the state's "abundant clean, renewable energy."

"We're backing Gippsland's energy future with more local jobs, more renewable energy, and the storage Victoria needs to keep the lights on," she said. In her statement, the Minister also made a political claim, saying, "Jess Wilson and One Nation will cut projects like these, destroying local jobs and sending energy bills sky rocketing."

Context: From Coal to Storage

The Hazelwood site, formerly home to a coal-fired power station, is being repurposed for battery storage, with the expansion building on a battery first commissioned at the site in 2023.

According to the announcement, the expansion is positioned as a contribution to Gippsland's shift towards renewable energy and the state's broader energy security goals, with completion targeted for 2028.

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