Tesla has secured a $133 million contract to expand its Western Downs battery facility in Queensland, Australia. This expansion is in line with Tesla’s ongoing efforts to expand its global energy storage infrastructure.
The project will increase the site’s capacity to 540 MW / 1,080 MWh, doubling its current energy storage capacity. Tesla will provide 140 Megapack units and the expanded facility is expected to be operational by 2026.
Neoen, the French renewable energy company that operates the Western Downs facility, has entered into a 10-year agreement with AGL Energy, Australia’s largest coal producer, for this expansion. This collaboration reflects the increasing adoption of large-scale energy storage solutions in Australia’s evolving energy sector.
AGL Energy’s Chief Operating Officer, Markus Brokhof, noted that the “virtual battery” arrangement offers increased flexibility and efficiency, allowing remote management without the need for direct physical operation and maintenance.
Neoen CEO Xavier Barbaro said the company has been instrumental in developing the virtual battery concept in Australia to meet the growing demand for innovative energy solutions. Neoen currently manages 1,925 MW / 4,709 MWh of energy storage capacity in various stages of development across Australia.
While the Western Downs site is currently the largest battery project in Queensland, the Stanwell battery expansion will surpass it with a planned capacity of 300MW/1,200MWh. The Queensland government has committed $448.2 million to the project, which will be built near a coal-fired power station slated for decommissioning.
Tesla continues to expand its Megapack installations across Australia with projects in New South Wales, Victoria and Western Australia. These developments demonstrate Australia’s increasing investment in renewable energy and grid stability through advanced energy storage technologies.
Source: EconoTimes, Teslarati
