Tesla has secured yet another large Megapack contract, and again in Australia. This time the deal with worth US$200 million, and will see Tesla supply its Megapack battery systems to two major energy storage projects in New South Wales, Australia.
In partnership with Ausgrid, one of Australia’s leading electricity distribution networks, Tesla will deliver two large battery energy storage systems (BESS) for deployment in the Newcastle and Sydney areas. These projects, each sized at 200 megawatts (MW) with a storage capacity of 400 megawatt-hours (MWh), are expected to play a significant role in stabilizing the region’s energy grid and advancing Australia’s clean energy goals. (via RenewEconomy)
Both BESS installations will be placed in strategically chosen locations. In Newcastle, the Megapacks will be installed at the Steel River industrial complex, which hosts a variety of industries including a CSIRO Energy Research Centre, a data center, and recycling facilities. Meanwhile, in Sydney, the battery units will be situated in the suburb of Homebush on a lot already zoned for electricity supply.
Ausgrid’s use of pre-owned land provides a logistical advantage by simplifying the infrastructure setup, as both sites will connect directly to Ausgrid substations via newly constructed underground cables.
In terms of capacity, the 200 MW/400 MWh size of these Megapacks enables them to offer essential support during peak energy demand periods, as well as to provide frequency control ancillary services (FCAS). This additional layer of grid support is especially valuable given the growing share of renewable energy sources in the Australian energy market, which sometimes leads to instability due to fluctuations in renewable energy supply.
By acting as a buffer, the Tesla Megapacks will release stored energy during peak times, reducing strain on the grid and potentially lowering electricity costs.
Scheduled to begin construction in mid-to-late 2025, these battery projects mark a significant expansion for Ausgrid, which is entering large-scale energy storage for the first time. Previously, the company focused on smaller community batteries, with nine installations across New South Wales backed by federal funding. By expanding to larger-scale batteries, Ausgrid hopes to better manage demand and encourage more sustainable energy usage.
Tesla is becoming a household name in Australia when it comes to battery energy storage projects. The company has already deployed several notable Megapack projects across the country, including most recently being part of the largest BESS in Western Australia.
