Origin Energy Limited has made a final investment decision on the first stage of a large-scale battery at Eraring Power Station, committing to a $600 million investment.
Agreements have been signed for the supply and construction of the battery, with work set to begin within the next few weeks. Stage one entails building a 460 MW battery storage system with a two-hour dispatch length, which is expected to go online in the fourth quarter of the 2025 calendar year. Origin can extend the battery capacity to 700 MW and the dispatch time to four hours in the future.
Origin CEO Frank Calabria stated that Origin’s approval of the Eraring battery is a critical milestone in the company’s goal of leading the energy transition and advancing renewable energy and storage in its portfolio.
“We are pleased to make this significant capital investment in Origin’s first major battery project to support the growth in renewable energy that’s occurring across the NEM, together with the expansion of our own portfolio of renewable energy developments,” Calabria said.
Origin head of energy supply and operations Greg Jarvis stated that Eraring is a crucial location with high-quality connectivity infrastructure, and the Eraring battery is an essential next step in transforming the site for the future.
“We are grateful for the strong support Origin has received from the local community and other stakeholders, and we look forward to working with our key contractors to deliver the Eraring battery safely and expeditiously, consistent with the conditions of approval granted by the NSW Government,” Jarvis added.
The NSW Department of Planning and Environment approved the Eraring battery project’s preliminary planning in May 2022.
Wärtsilä, a Finnish technological group, will supply battery equipment, while Enerven, a subsidiary of SA Power Networks, will provide design and construction services.
According to Origin, Eraring is Australia’s largest power station, producing over a fifth of the state’s energy requirements. It is Origin’s sole coal-fired power plant.
On 17 February 2020, Origin notified the Australian Energy Market Operator of the potential early retirement of the Eraring coal-fired power station at the end of the necessary three-and-a-half-year notice period. Origin will continue to monitor the market over time, which will assist in shaping the eventual timeframe for the closure of all four units at Eraring. Origin will also continue to constructively communicate with the market operator, the NSW Government, our employees, and the local community regarding Eraring’s shutdown plans.
