Image: AGL

From pv magazine Australia

Energy group AGL has reached a final investment decision on the 500 MW/2,000 MWh Tomago BESS, which is located approximately 20 km northwest of Newcastle, New South Wales. It has appointed energy storage company Fluence to build the project.

Construction on the AUD 800 million ($514 million) battery energy storage system will begin in late 2025. It is expected to enter operation in late 2027 and have a 20-year lifespan.

AGL Managing Director and CEO Damien Nicks said the final investment decision on the Tomago battery project marks another significant milestone in the company’s transition and decarbonization of its energy portfolio.

“Once operational, the Tomago Battery will expand on AGL’s existing suite of grid scale battery assets and contracted capacity from third parties and further enhance our flexible asset portfolio,” Nicks said. “Importantly, both the 250 MW Torrens Island and 50 MW Broken Hill Batteries have delivered strong performance since they commenced operations, and the 500 MW Liddell Battery remains on track to commence operations in early 2026.”

Nicks added that AGL has a clear pathway to a final investment decision on another 900 MW of grid-scale battery projects, as it aims to accelerate the development of a grid-scale battery portfolio and grow a fleet of flexible assets.

“We will continue to leverage our innovative, in-house capabilities to optimise the performance of our grid-scale battery assets,” Nicks said.

Image: AGL

The project is regarded as one of the largest single transactions in the National Electricity Market (NEM) to date, and Fluence’s largest-ever project transaction. The installation will use Fluence’s Gridstack Pro, a utility-scale energy storage product with optimized design and flexibility that will provide grid-forming capability and improve reliability.

Fluence APAC President Jan Teichmann said the project demonstrates the company’s ongoing commitment to support AGL in its ambitious plan to deploy large-scale battery storage systems for a renewable energy future across Australia.

“Australia remains one of the most important storage markets globally, experiencing significant growth as the country accelerates its transition to renewable energy sources,” said Teichmann.

The Tomago BESS is Fluence’s third grid-scale battery energy storage system for AGL. The company previously completed the 50 MW/100 MWh Broken Hill BESS and is currently building the 1,000 MWh Liddell BESS.