NSW Approves EnergyAustralia’s $650 Million Mt Piper Battery Storage Project

EnergyAustralia has secured approval for its A$1 billion ($650 million) Mt Piper Battery Energy Storage System (BESS) project, marking a significant step in New South Wales’ (NSW) transition to renewable energy. The NSW Department of Planning, Housing, and Infrastructure granted the development approval, with construction set to begin in 2026. The Mt Piper BESS will be one of Australia’s largest battery storage facilities, designed to provide reliable electricity during peak demand periods, supporting the state’s growing need for grid stability as coal-fired power generation phases out.

Project Capacity and Impact on Energy Grid Stability
Located near Lithgow in NSW, the Mt Piper BESS will have a storage capacity of 500 MW/2 GWh, which is enough to power more than 200,000 homes. At full capacity, the system will be capable of supplying energy for up to four hours to approximately 320,000 homes and small businesses. By storing surplus electricity generated during off-peak hours, the facility will provide energy to the grid during high-demand periods, particularly during the mornings and evenings when renewable energy sources like solar and wind are less reliable.

This large-scale battery is expected to help stabilize the electricity grid, reducing the reliance on fossil fuel-based power plants and supporting the state’s clean energy transition. The Mt Piper facility will be located on existing infrastructure at the Mt Piper power station site, leveraging the site’s established connection to the grid for faster and more efficient implementation.

Local Economic Benefits and Job Creation
The Mt Piper BESS is anticipated to create 177 jobs during its construction phase, providing a boost to the local Lithgow economy. Additionally, EnergyAustralia has committed to investing A$2 million ($1.3 million) into community initiatives within the Lithgow City local government area, ensuring that the local community directly benefits from the project. This is in line with the company’s broader commitment to integrating renewable energy solutions with regional development and local economic growth.

Supporting NSW’s Renewable Energy Future: The Lake Lyell Pumped Hydro Project
Alongside the Mt Piper BESS, EnergyAustralia is advancing the Lake Lyell pumped hydro project, also located near Lithgow. This critical state infrastructure project has been proposed with a capacity of 335 MW, capable of providing energy for up to eight hours, enough to power 150,000 homes. The project, which has been declared Critical State Significant Infrastructure (CSSI), is part of the state’s ongoing efforts to diversify energy generation and enhance storage capabilities. A decision on the Lake Lyell project’s development is expected in the second half of 2025.

Both the Mt Piper and Lake Lyell projects are essential to NSW’s renewable energy strategy, with large-scale battery storage and pumped hydro helping to balance intermittent renewable energy generation, ensuring that the grid remains reliable as the state transitions away from coal.