Neoen Secures 300 MW Contract for Collie Battery Stage 2 from AEMO

Neoen, a renewable energy producer has secured a contract to enhance energy storage capabilities in Western Australia. 

The Australian Energy Market Operator (AEMO) has awarded Neoen a 300 MW capacity services contract for Stage 2 of the Collie Battery project, reinforcing the region's commitment to clean and sustainable energy initiatives.

The Stage 2 of Collie Battery, sized at 341 MW / 1,363 MWh, will consist of 348 Tesla Megapack 2 XL units and is strategically located near the town of Collie in the Southwest region of Western Australia. Scheduled to be operational in Q4 2025, the project will connect to Western Power’s new Palmer Terminal substation in the South-West Interconnected System (SWIS), significantly contributing to the stability and efficiency of the network.

This contract follows the success of Stage 1, a 219 MW / 877 MWh project that won a similar contract with AEMO in June 2023. Currently under construction, Stage 1 is on track to commence operations in Q4 2024. Together, the Collie Battery project is poised to play a key role in addressing the region's energy demands, with the capability to charge and discharge 20 percent of the average demand in the SWIS.

The AEMO Non-Co-optimised Essential System Services (NCESS) contract for Stage 2 will run for a period of two years from October 1, 2025, providing 300 MW of storage capacity for 4-hour discharging across the evening peak. This initiative aims to mitigate risks associated with the retirement of coal power plants, high penetration of rooftop solar, and increasing energy demand in Western Australia.

Moreover, the Stage 2 project is expected to generate economic benefits for the Shire of Collie, creating 150 construction jobs and fostering opportunities for local suppliers, further supporting the region's energy transition efforts.

Louis de Sambucy, Neoen Australia’s CEO, expressed gratitude for winning the contract, stating, “We are thrilled to have won this second NCESS contract and would like to thank AEMO, Western Power, and the WA Government for their continued trust. We are looking forward to the major contribution Collie Battery will make to supporting WA’s energy transition. I would also like to congratulate the team on reaching the milestone of 4 GW of capacity in Australia – it represents an extraordinary collective effort over the past 12 years.”

Jai Thomas, Energy Policy WA’s Coordinator of Energy, emphasized the importance of the Collie Battery project in advancing Western Australia's transition to a greener and more resilient power system, attributing its success to the NCESS process administered by AEMO.