Origin approves manufacturing of large-scale Eraring battery

Eraring Power Station. Image credit: Origin Energy Limited

Origin Energy Limited has committed to a $600 million investment towards the first phase of the development of a large-scale battery at the Eraring Power Station in New South Wales. 

Origin’s decision comes more than a year after the business announced plans to close the country’s largest coal-fired power plant by 2025, seven years earlier than projected, since clean energy has made it economically unfeasible.

In an ASX announcement, the company said contracts have been signed for the supply and construction of a 460 MW battery storage system with a dispatch duration of two hours and is anticipated to be operational in the fourth quarter of 2025.

The move also allows Origin to increase the battery capacity to 700 MW and four hours of dispatch duration in the future.

“Development of the Eraring battery is a key next step as we look to transform the Eraring site for the future, given our intention to exit coal-fired generation by as early as August 2025,” said Greg Jarvis, Origin’s head of energy supply and operations.

Eraring, he continued, is a key location with high-quality connecting infrastructure that allows the company to transport energy to important demand centres.

“We are grateful for the strong support Origin has received from the local community and other stakeholders, and we look forward to working with our key contractors to deliver the Eraring battery safely and expeditiously, consistent with the conditions of approval granted by the NSW Government,” Jarvis said.

Meanwhile, Origin CEO Frank Calabria pointed out that the approval of the Eraring battery is a key milestone for Origin and a further important step in the company’s strategy to lead the energy transition and accelerate renewable energy and storage in its portfolio.

As part of the arrangement, Wärtsilä, an internationally active Finnish technological company, will supply the battery equipment, and Enerven, a SA Power Networks subsidiary, will offer design and construction services.