Construction has started on the Steel River East Battery Energy Storage System at Mayfield West, with a sod-turning event on Friday 14 August marking the beginning of work on the Newcastle project.
The project is being delivered by PLUS Grid Storage at McIntosh Drive in the Steel River Industrial Estate, where 112 battery units will be installed alongside a control and switch room and onsite workshop. The battery will have a capacity of 200 MW and storage capacity of 400 MWh.
PLUS Grid Storage is a partnership between the NSW Government, IFM Investors, APG Group and AustralianSuper.
From approval to construction
The start of work comes about five months after the NSW Independent Planning Commission approved the project on 19 March.
The State Significant Development approval allows for construction and operation of the battery, associated infrastructure and electricity grid connection works. The site is within the existing 132 kV Mayfield West zone electricity substation and the Hunter-Central Coast Renewable Energy Zone.
The battery will store electricity for later supply to the network, allowing it to provide grid firming and network stability services.
In approving the development, the Independent Planning Commission said the project “would contribute positively to the State’s transition to a lower-carbon energy system and deliver benefits to the State’s electricity network by enhancing grid reliability and supporting the integration of renewable energy sources.”
$100 million investment backs battery program
The move into construction follows the NSW Energy Security Corporation’s first investment, announced in June.
The corporation committed $100 million to PLUS Grid Storage’s battery platform to support construction of four projects. The first two are 200 MW batteries at Steel River Industrial Estate in Newcastle and Homebush in Sydney.
The four projects supported by the investment are expected to provide 650 MW of capacity, while PLUS Grid Storage’s wider development pipeline is intended to reach up to 1 GW by 2031. The NSW Government said the first 500 MW was expected to be operating by early 2029.
Energy Security Corporation CEO Paul Peters said the proposed delivery timeframe and use of existing infrastructure influenced the investment decision.
“PLUS Grid Storage’s ability to deliver these projects by 2029, while making better use of existing infrastructure, were critical factors in our decision to invest in this battery platform.”
Construction brings wider economic activity
Beyond its role in the electricity system, the Steel River East project is expected to generate economic activity through its construction and ongoing operation.
The project’s socio-economic assessment found construction would support employment and income in Newcastle and NSW, with spending flowing through businesses supplying goods and services to the project. Once operating, the battery is also expected to generate ongoing supply-chain activity.
Located within an established Newcastle industrial precinct, the project adds another large-scale energy development to the Hunter’s industrial economy while creating demand for the contractors and suppliers involved in its delivery.
