AGL’s battery green light for Liddell, consortium picked for renewable energy zone

A consortium will deliver an expanded renewable energy zone and AGL Energy’s $750m battery project at its former Liddell Power Station will go ahead.

A string of major green electricity deals have been struck in NSW, where a consortium has been awarded the contract to deliver an expanded Central-West Orana renewable energy zone and AGL Energy has approved a $750m battery project at the site of its former Liddell coal plant.

The Central-West Orana zone’s intended network capacity has been lifted to six gigawatts by 2038, compared with the original 4.5GW capacity, although its footprint will remain in line with the original scheme, which covers an area of about 20,000sq km around Dubbo.

Spain’s Acciona has teamed up with Cobra, an arm of France’s Vinci, along with local player Endeavour Energy as preferred network operator for the Central West Orana green energy precinct, with a 35-year contract to deliver, operate and maintain the facility.

If approved, construction is expected to start in early 2025, with initial operations kicking off in 2027-28.

The NSW government expects the green zone will generate up to $10bn in private investment in the region by 2030 and at its peak support about 5000 construction jobs.

Separately, AGL Energy has approved a giant battery at the site of its former Liddell coal station in NSW’s Hunter Valley.

Construction of the 500MW, two-hour duration grid-scale battery is expected to begin in early 2024 and due online in mid-2026.

AGL boss Damien Nicks. Picture: Britta Campion

Fluence has been selected as the preferred engineering, procurement and construction ­provider.

AGL said the battery would be funded on its balance sheet, utilising operating cash flows and existing debt facilities, including AGL’s recently secured green capex loans.

“The Liddell battery will be a key component of achieving our interim target of approximately 5GW of new renewables and firming capacity in place by 2030,” AGL chief executive Damien Nicks said.

“Once completed, the Liddell battery will add to AGL’s existing suite of grid-scale battery assets and contracted capacity from third parties.”

AGL shut down the Liddell coal plant in April. Experts said the move would not increase the risks of shortages in the electricity grid, even though the market is cautious about insufficient replacement supply being delivered over the next few years.

The Australian Energy Market Operator, which runs the power grid, said it was confident about the outlook through to 2025 – the year when Origin Energy’s Eraring coal plant may also be shut down.

Generators have responded to the closure with new supply coming online, including new gas-fired capacity at Tallawarra and Kurri Kurri, renewables, battery and transmission developments, according to the Australian Energy Council.

The NSW government is in talks with Origin Energy over the option of keeping the Eraring power station open past its scheduled close in August 2025.

Originally published as AGL’s battery green light for Liddell, consortium picked for renewable energy zone