By: Salma El-Saqqa
French energy giant Engie has achieved financial close for the Hazelwood battery expansion project in the Latrobe Valley of Victoria, Australia, marking a pivotal phase in transforming the former coal-fired power station site into a vital clean energy hub. This expansion is part of a broader strategy to reuse existing infrastructure of retired plants to enhance national grid stability.
Details of the expansion project
The project involves adding 150 MW of generation capacity and 300 MWh of storage capacity to the existing facility. The project recently received an electricity transmission license from the Victorian government, allowing the facility to operate as a declared transmission system operator, while leveraging existing grid infrastructure left by the former Hazelwood station. Expansion works are expected to be completed by 2028, providing approximately 370 job opportunities during the construction phase.
Transformation strategy for old sites
Engie is relying on a "Brownfield" development model for this project, which leverages existing transmission networks and substations, sparing the company the financial and logistical complexities associated with building new network connections from scratch. This model has become vital for renewable energy projects in Australia in light of the challenges facing network connections and energy transmission bottlenecks. The company strengthened its full control over the project after acquiring its former partner's stake earlier this year.
The role of storage in grid stability
As increasing amounts of intermittent renewable energy, such as wind and solar power, continue to be integrated, large-scale storage batteries are becoming an urgent necessity to maintain grid frequency. The Hazelwood expansion will contribute to absorbing surplus renewable generation during periods of low demand and injecting it into the grid during evening peak times, reducing reliance on gas plants and curbing the risk of power outages during extreme weather conditions. This move confirms investor confidence in the Australian National Energy Market mechanisms, particularly regarding storage and frequency control services.
