Neoen, one of Australia's leading renewable energy developers, has begun operations at the first stage of its Western Downs Battery Energy Storage System (BESS) in Queensland. The 270MW/540MWh battery, located 22km southeast of Chinchilla, will soon provide grid-forming services to the National Electricity Market (NEM), enhancing reliability and renewable integration.

The project is part of Neoen’s larger Western Downs Green Power Hub, which also includes a 460MWp solar PV plant. Construction on the battery system began in late 2023, with engineering firm UGL leading the build and Tesla supplying its Megapack battery solution.

Next Phase to Double Capacity by 2026

The Western Downs BESS is set to expand further. A second stage, expected to come online in 2026, will increase the site’s total capacity to 540MW/1,080MWh. Both stages are being built adjacent to the existing solar farm, forming one of Australia's largest hybrid renewable energy hubs.

Neoen Australia said the battery will soon contribute to the grid’s stability, particularly as demand for flexible energy solutions grows. The project is also designed to enhance the state’s ability to meet peak energy needs and reduce reliance on fossil fuels.

Neoen's Market Position and Future Plans

With 4.3 GW of renewable energy assets in operation or under construction across Australia, Neoen continues to play a key role in the country’s clean energy sector. The French independent power producer is currently in the process of being acquired by Canadian investment giant Brookfield in a US$6.7 billion deal.

However, the acquisition has faced challenges. In October 2024, the Australian Competition and Consumer Commission (ACCC) raised concerns that delayed progress, prompting Neoen to restructure parts of its Australian portfolio.

As part of the deal, Neoen has agreed to sell its Victoria-based assets including the 652MW operating portfolio and 2.8GW development pipeline—to ASX-listed HMC Capital for AUD 950 million. Despite this divestment, the company remains committed to expanding its footprint in battery storage across the country.

“The Western Downs Battery is a flagship project and a cornerstone of our long-term strategy in Australia,” Neoen Australia said in a statement.

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