AGL Energy Ltd (ASX:AGL), one of Australia’s leading utilities, has announced plans to make a final investment decision (FID) on 1.4 GW of utility-scale battery energy storage system (BESS) projects within the next 12-18 months. This decision comes as part of the company’s ongoing efforts to transition from coal to renewable energy sources.
As outlined in its latest financial results for the period ending 31 December 2024, AGL is focusing on expanding its BESS portfolio to support its energy transition. The company already has a number of utility-scale batteries in operation, including the 250 MW/250 MWh Torrens Island and 50 MW/50 MWh Broken Hill batteries, located in South Australia and New South Wales.
One of the key projects in AGL's pipeline is the 500 MW/1,000 MWh battery being developed at the site of the now-shuttered Liddell coal-fired power station in New South Wales. The Liddell Battery, which is 30% complete, is expected to begin operations in April 2026. This battery will play a crucial role in supporting the transition from coal to renewable energy, particularly as AGL continues to expand its renewable generation capacity.
CEO Damien Nicks emphasized that AGL’s growing battery storage assets are designed to manage increasing volatility in the National Electricity Market (NEM) as coal-fired plants retire and renewable energy penetration continues to rise. He noted that the company expects this volatility to remain elevated, creating significant opportunities for grid-scale batteries.
In total, AGL plans to make FID on four BESS projects across New South Wales, totaling nearly 900 MW, as well as a 500 MW scheme in Queensland. This will further bolster AGL’s already substantial flexible fleet capacity, which currently stands at 7.6 GW. The company also added 200 MW of capacity through a second 200 MW virtual battery agreement with Neoen during the period.
As AGL continues to evolve its energy portfolio, it remains committed to adding 12 GW of new renewable generation and firming capacity by 2035.
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