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CEP.Energy plans record grid scale 1,200 MW battery in Hunter Valley to fill future coal-fired powergen gap

Posted on 8 Feb 2021

CEP.Energy recently announced it will build a grid-scale battery with capacity up to 1,200 MW within the Hunter Economic Zone (HEZ) precinct at Kurri Kurri, in Australia’s Hunter Valley coal mining region, under a new 30 year lease agreement with the Hunter Investment Corporation. The NSW battery would be the largest asset in CEP’s planned network of four grid-scale batteries across the country, with total capacity up to 2,000 MW.

It is also the largest proposed grid-scale battery in the world today, with potential capacity up to eight times that of the grid-scale battery operating in Hornsdale, South Australia. Peter Wright, CEO of CEP.Energy, said the business is on track to become the largest battery storage asset owner in the Australian energy market. “CEP’s grid-scale battery network is part of our dual-track strategy to generate and store clean, reliable and cost-effective electricity for Australian businesses, and make excess power available to the national grid to firm up the increase in renewable generation. To achieve this, we have secured strategic locations with excellent access to existing network connection infrastructure. The HEZ site for our NSW battery is zoned for heavy industrial use, pre-approved for power generation and located adjacent to existing sub-stations. It is among the best handful of sites in Australia for reliable and efficient grid connection.”

Wright added that the Hunter battery is proposed to be developed in stages. An expression of interest process to select a battery provider will soon be issued. Commencement of construction of CEP’s NSW big battery is planned for the first quarter of 2022, while the target timeframe for commencement of operations is 2023. Morris Iemma, Chairman of CEP.Energy, said integrated grid-scale battery networks are accelerating Australia’s transition to a clean energy future: “Big batteries, including the one planned by CEP.Energy for the Hunter, will play a major role in filling the gaps left by the gradual retirement of coal and gas-fired generation assets, including the nearby Liddell Power Station. The clean energy roadmap laid out by the NSW Government has provided the market with the confidence to invest in renewable generation supported by large battery storage. This project will help ensure the Hunter region of NSW remains true to its heritage as one of the nation’s energy powerhouses as we work towards a cleaner, decarbonised future.”