A significant expansion of battery storage capacity at the former Hazelwood Power Station site has reached a critical regulatory milestone, paving the way for increased renewable energy reliability in Victoria’s Gippsland region. The project, led by ENGIE, is progressing toward financial close following the designation of Hazelwood BESS Line Co Pty Ltd as a Declared Transmission System Operator. This status allows the initiative to utilize existing transmission infrastructure, streamlining development and reducing costs associated with new grid connections.
The expansion involves adding a 150-megawatt battery system with 300 megawatt-hours of storage capacity to the facility originally commissioned in 2023. Once completed, this addition will double the site’s total power output to 300 megawatts. The combined storage capability is sufficient to supply electricity to approximately 500,000 homes for up to 90 minutes during periods of high demand or grid instability.
By leveraging the existing electrical connections and infrastructure at the former coal-fired power station site, the project aims to transform Hazelwood into a central hub for clean energy generation and storage. The initiative is designed to enhance the stability of Victoria’s electricity grid by storing surplus renewable energy and dispatching it when needed, thereby supporting the broader transition toward a more reliable renewable energy system.
The construction phase of the expansion is expected to generate up to 370 jobs, providing significant employment opportunities for local workers and businesses in Gippsland. The project is scheduled for completion in 2028 and is anticipated to strengthen regional energy security while contributing to long-term economic benefits for the community.
Broader energy sector initiatives in Victoria are projected to deliver substantial wage growth to regional communities between 2026 and 2040. Estimates suggest that over $18 billion in wages will be generated across the state, with approximately $4.62 billion specifically directed toward Gippsland workers holding university, tertiary, or high-school level qualifications. These figures reflect ongoing efforts to integrate renewable energy infrastructure development with regional economic planning.