Tesla and Neoen set to build massive 219MW energy storage system

July 5, 2023

Tesla and Neoen will collaborate to build a massive 219MW, four-hour 877 MWh battery energy storage system in Western Australia near the coal town of Collie that will be powered by 224 2XL Megapacks.

The project could expand to 1 GW/4GWh, as it has already landed the necessary approvals to potentially grow to support more sustainable energy reliance in the future.

It is Neoen’s first battery project that could support a four-hour long duration, as it currently operates five other BESS projects in Australia. This one is the largest and will be able to support times when energy is most needed by the grid to encourage stability.

Neoen has already provided Tesla with notices to proceed with its production and delivery of 2XL Megapack units, indicating Stage 1 of the project is already underway.

According to ReviewEconomy AustraliaNeoen will be contracted for two years and will be tasked to make 197MW of battery storage capacity available for four hours, between 10 am and 2 pm, to charge, helping to stabilize energy needs and lift demand levels off the grid during peak times. It will also be required to withstand the evening peak and take pressure off the grid. This time slot falls between 4:30 pm and 8:30 pm.

The value of the project has not been announced, but Neoen lifted its operating earnings by $160 million last quarter. This could indicate the profit made from the deal could have lifted the company’s operating earnings in preparation for the deal, especially given that it occurred in a short period of time.

The project is set to help avoid what is called the “solar duck,” which describes the energy usage that people put on the grid through daily tasks.

solar duck collie battery tesla neoen

Credit: Synergy (via ReviewEconomy)

Tesla Megapacks are being used for the project, which has been an ideal choice for many large-scale BESS across the world. Tesla already has Megapacks operating at several BESS projects in Australia, including the “Big Battery” in South Australia and the Hornsdale Power Reserve.

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“This is an exciting time for Neoen as it is our first major project in WA, and it also means we now have a big battery in five of the six Australian states,” Louis de Sambucy, head of Neoen Australia, said. “With our growing team in Perth and a strong pipeline of projects, we look forward to playing an increasingly significant role in the state’s rapid decarbonization.”

Tesla has been increasing production of Megapacks to suit the company’s needs as there has been more demand for the energy product. The company is building Megapacks in both Shanghai and Lathrop, California.

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Tesla and Neoen set to build massive 219MW energy storage system