First Energy Security Corporation investment targets storage where demand is greatest
A $100 million commitment from the NSW Energy Security Corporation will support a network of four batteries across Sydney, Newcastle and the Hunter Central Coast, with the projects selected for their ability to add storage capacity in some of the state's busiest electricity demand centres.
The NSW Energy Security Corporation (ESC) has announced its first investment, committing $100 million to a battery platform expected to deliver up to 1 GW of storage capacity across Sydney, Newcastle and the Hunter Central Coast by 2031.
The investment will support four battery projects being delivered by PLUS Grid Storage, a separate entity within the Ausgrid Group that develops, owns and operates distribution-connected battery storage assets.
According to the NSW Government, the investment reflects the corporation's role in supporting energy infrastructure projects that are considered important to maintaining reliability as ageing coal-fired power stations retire.
The first stage includes two 200 MW batteries at Homebush and Newcastle. A further two batteries with capacities of approximately 100 MW and 150 MW are planned to follow.
Combined, the four projects are expected to have enough storage capacity to power up to 118,000 homes each day.
Using existing infrastructure to accelerate delivery
A key feature of the battery platform is its use of existing electricity network infrastructure.
The NSW Government said the projects were selected because they can be delivered in locations where demand is high while reducing the need for major new network infrastructure and limiting impacts on surrounding communities.
Energy Security Corporation Chief Executive Officer Paul Peters said the location of the projects played an important role in the investment decision.
“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 the ability to deliver the projects by 2029 and make better use of existing infrastructure were important considerations for the corporation.
The first 500 MW of storage is expected to be operating by early 2029, with an additional 150 MW anticipated later that year.
Supporting reliability as the electricity system changes
The Energy Security Corporation was established by the NSW Government to co-invest in projects intended to support energy security and reliability.
Its investment mandate focuses on large-scale projects that require flexible capital to reach financial close and deployment, with priority given to infrastructure considered necessary for the operation of the electricity system.
Minister for Climate Change and Energy Penny Sharpe said battery storage was becoming increasingly important as the state's electricity mix evolves.
"Large-scale batteries are revolutionising NSW’s energy grid, delivering greater energy security and helping to drive down prices."
The NSW Government said storage projects such as these help ensure electricity remains available when renewable generation output varies and can provide additional support during periods of high demand.
First project set to commence
The first project within the platform is the Steel River East Battery Energy Storage System at Mayfield West in Newcastle.
The project received planning approval in March 2026 and is designed to store 400 MWh of energy. Ausgrid has stated this is enough to supply up to 27,000 households for a day.
Construction is expected to begin next month at the Steel River Industrial Estate site adjacent to an existing substation.
This investment marks the first practical deployment of capital from the Energy Security Corporation, providing an early indication that large-scale storage in established demand centres will be a priority as the state's electricity system continues to change.
