PVTIME – The French energy group ENGIE has reached financial close on the expansion of the Hazelwood Battery Energy Storage System in Victoria, Australia, to 150MW/300MWh. Construction is scheduled to begin before the end of 2026, with the system expected to be operational by 2028.
Known as Hazelwood Battery Energy Storage System 2, the expansion will increase the site’s total capacity to 300MW/450MWh, further strengthening its position as one of the largest battery assets in the National Electricity Market. The original 150MW/150MWh facility has been operational since 2023.
ENGIE has stated that the additional storage capacity will facilitate the integration of renewable energy sources in Victoria, particularly in anticipation of the planned closure of the Yallourn Power Station. The system will charge when solar generation is abundant and discharge during evening demand peaks, providing flexibility services to wholesale customers.
Sungrow will supply the battery technology, while Elecnor will deliver the balance of plant and associated infrastructure. ENGIE has confirmed that all principal contracts have been finalised ahead of financial close.
The project is part of the wider redevelopment of the former Hazelwood Power Station in the Latrobe Valley, which ceased operations in 2017. Site rehabilitation works are progressing separately through the Environment Effects Statement process.
