The NSW Energy Security Corporation (ESC) has announced a $100 million investment in a large scale battery platform that will be rolled out across Newcastle, Sydney and the Hunter Central Coast, marking the corporation’s first funding commitment since its establishment by the NSW Government.
The investment will support the delivery of four battery energy storage projects through PLUS Grid Storage, an entity within the Ausgrid Group responsible for developing, owning and operating distribution connected battery assets.
The first project to move into construction is the Steel River battery at Mayfield West in Newcastle, with works expected to begin next month.
According to the NSW Government, the battery platform is expected to reach up to 1 GW of capacity by 2031, with the first 500 MW of storage anticipated to be operational by early 2029. A further 150 MW is expected to be added later that year.
Focus on areas where demand is highest
The investment is directed towards projects in some of NSW’s largest electricity demand centres, including Newcastle and metropolitan Sydney.
ESC Chief Executive Officer Paul Peters said the decision reflected both the location of the projects and their ability to be delivered within the required timeframe.
“This is a platform investment in one of the state’s most critical load centres, where demand is highest, land is constrained and the need for storage is most immediate.”
Mr Peters said PLUS Grid Storage’s ability to use existing infrastructure and deliver projects by 2029 was a key consideration in the investment decision.
The NSW Government said the projects would strengthen reliability in parts of the state with high electricity demand while making use of existing network infrastructure.
Steel River battery approved for development
The Newcastle component of the battery platform is the Steel River East Battery Energy Storage System (BESS), located within the Steel River Industrial Estate at Mayfield West adjacent to an existing substation.
The project received planning approval in March 2026 and is designed to provide 400 MWh of energy storage capacity. Ausgrid states this would be enough to supply up to 27,000 households for a day.
The battery is proposed for a site at 1 McIntosh Drive, Mayfield West, within the footprint of the Hunter Central Coast Renewable Energy Zone.
Ausgrid has previously stated that energy storage projects such as Steel River East can assist with integrating increasing amounts of renewable generation into the electricity system while supporting network reliability.
Part of a broader storage build out
The ESC investment will support construction of the two initial 200 MW battery projects, at Newcastle and Homebush, followed by two additional batteries with capacities of approximately 100 MW and 150 MW.
Combined, the four projects are expected to have enough capacity to power up to 118,000 homes per day.
Minister for Climate Change and Energy Penny Sharpe said large scale batteries were becoming an increasingly important part of the state’s electricity system.
“Large-scale batteries are revolutionising NSW’s energy grid, delivering greater energy security and helping to drive down prices.”
The Energy Security Corporation was established to support projects considered important to maintaining reliability and security as NSW’s ageing coal fired power stations progressively retire. Its investment mandate focuses on large scale energy infrastructure projects that require flexible capital to reach deployment.
The Steel River East BESS project places the Hunter at the forefront of the corporation’s first funding decision, with construction expected to commence as the region continues to expand its role in electricity storage and network infrastructure.
