AGL Initiates Construction of Grid-Scale Battery at Former Liddell Coal-Fired Power Plant Site

AGL Energy has received approval for the development of a 500-megawatt energy storage facility on the grounds of the former Liddell coal-fired power plant. The final investment decision was announced on Tuesday, marking a significant step for the energy company in its transition towards renewable energy solutions in the Hunter region of New South Wales.

The grid-scale battery, designed with a two-hour duration, is set to be a crucial component in AGL's plan to achieve an interim target of installing approximately five gigawatts of new renewable energy and firming capacity by the year 2030. The Liddell battery project, with an estimated total construction cost of $750 million, will be financed through AGL's balance sheet.

AGL's Chief Executive Officer, Damien Nicks, highlighted the critical role of the Liddell battery in the firm's strategy to reduce carbon emissions, especially given AGL's goal to shut down its final coal-powered facility by 2035. According to Nicks, the conclusive investment decision for the Liddell battery initiative is a notable step forward in AGL's journey towards decarbonization and the transformation of its energy portfolio."

The Liddell battery project is scheduled for completion in 2026 and will join AGL's growing fleet of battery assets, which already includes the 250MW Torrens Island battery in South Australia and the upcoming 50MW Broken Hill battery.

The addition of the Liddell battery is strategically important for New South Wales, contributing to the stability of the electricity grid and supporting the state government's ambitious emissions reduction target of 70% by 2035, especially as coal-fired power stations are gradually retired.

To facilitate this groundbreaking project, AGL secured a $35 million grant from the Australian Renewable Energy Agency (Arena). Additionally, a long-term energy service agreement has been established with the New South Wales government, underscoring the collaborative efforts between the private and public sectors in advancing sustainable energy solutions.

The Liddell battery's two-hour duration is a crucial factor in enhancing the grid's reliability and supporting the integration of renewable energy sources. It aligns with broader industry goals of transitioning towards cleaner and more sustainable energy alternatives.

AGL's commitment to renewable energy projects reflects the evolving landscape of the energy sector, where a traditional coal-focused company is actively investing in and deploying cutting-edge technologies to meet environmental goals. As AGL continues to diversify its energy portfolio, the Liddell battery stands as a testament to the company's dedication to driving the transition towards a more sustainable and resilient energy future in Australia.