ENGIE reaches financial close on Hazelwood Battery Expansion

ENGIE has today announced financial close on the Hazelwood Battery Energy Storage System expansion (HBESS 2), marking another significant milestone in the transformation of the former Hazelwood Power Station site and continued delivery of Australia’s energy transition.

The project will add a further 150MW / 300MWh battery energy storage system to the Hazelwood site, building on the success of the existing 150MW / 150MWh Hazelwood BESS, which has been operating since 2023. The expansion will increase the site's total installed battery capacity to 300MW / 450MWh, reinforcing Hazelwood's role as a major source of flexible energy infrastructure for Victoria and the National Electricity Market.

Laura Caspari, CEO and Managing Director of Renewables and Batteries at ENGIE ANZ, said the expansion is underpinned by strong customer demand for battery storage, driven by its ability to store low-cost solar generation during the day and dispatch it during periods of higher evening demand.

“The Hazelwood Battery has already demonstrated the value that energy storage can bring to the electricity system.

“Expanding the facility allows us to build on that success while making use of existing infrastructure, enabling the continued growth of renewable energy across Victoria, and providing additional capacity ahead of the planned closure of the Yallourn Power Station,” Ms Caspari said.

Since Hazelwood's closure in 2017, significant progress has been made to transform the site, with rehabilitation activities advancing alongside the development of new energy infrastructure. The Environment Effects Statement (EES) process for the mine rehabilitation project is now well advanced and on public exhibition, representing another important milestone in the site's long-term transition.

“Our ambition is to leave behind more than a rehabilitated site. We want to help create enduring assets that benefit the local community, strengthen Victoria's energy security and support the broader energy transition,” Ms Caspari said.

Construction will be delivered with leading project partners Sungrow, which will supply the battery technology, and Elecnor, which will deliver balance-of-plant and associated infrastructure works. Key contracts have been executed, with construction commencing later this year and commercial operations targeted from 2028.