Tesla gets $133M Megapack deal to double Queensland battery size

Tesla has gained another Megapack contract in Australia, coming as the latest of the company’s commitments to build new energy storage sites and expand existing ones.

The contract will oversee the expansion of the recently finished Western Downs battery in Queensland, Australia, increase the energy storage site’s size to 540 MW / 1,080 MWh, as detailed in a report from Renew Economy. In total, Tesla will provide 140 Megapack units for the project, expected to be valued at about $133 million, while developers expect the second stage of the project to be operational by 2026.

The site is being operated by French renewables company Neoen, which signed a 10-year contract with AGL Energy, which is the country’s largest coal generator. The contract signs into place the addition of Megapack power from Tesla, and it will expand what is Queensland’s largest battery project—for now, at least.

Tesla Megapacks to help grow 560 MW/2,240MWh battery in Australia

“The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” said AGL COO Markus Brokhof in a statement. “Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”

Neoen CEO Xavier Barbaro has also highlighted the company’s hand in several recent battery energy storage system (BESS) projects in Australia.

“Neoen is proud to have developed the ‘virtual battery’ offer in Australia, providing a bespoke, smart, value-added product that meets the increasing needs of our customers,” Barbaro said. “Over the past seven years, Neoen has been a leading player in storage in Australia and around the world, and we will continue to design and deliver integrated solutions to accelerate the energy transition.”

Neoen now has as much as 1,925 MW / 4,709 MWh of energy storage capacity either in operation or under construction in Australia.

Despite the Western Downs site currently being the Australian state’s largest battery project, an additional expansion at the state’s Stanwell battery is expected to increase the existing energy storage system to 300MW/1,200MWh to become the state’s biggest. That expansion also gained a $448.2 million investment from the state’s government, and it’s being constructed near a coal plant that’s slated to close.

Tesla also has a large number of other Megapack projects throughout Australia, including those in New South Wales, Victoria, Western Australia, and other states, still.

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