AGL has announced plans to build a grid-scale battery at Tomago as part of its goal to have 5 gigawatts of renewable generation and firming in place by the end of 2030.
The company has lodged a scoping report with the NSW Department of Planning and Environment for the project, which would have a capacity of 500 megawatts and up to 2,000 megawatt-hours of storage.
AGL hopes to commence public consultation on the project later this year.
"Through projects like the Tomago Battery, AGL is advancing and accelerating our project pipeline to meet our 5 gigawatt target of renewable generation and firming in place by the end of 2030," a spokesperson said.
"AGL has already announced the development of grid-scale battery projects in NSW, SA and Victoria, with the Torrens Island and Broken Hill batteries due to start operating this year.
The company is developing another 500 megawatt battery on the site of the Liddell Power Station, which is due to close on April 28.
The Tomago battery project would be built near the site of the company's proposed 250-megawatt gas peaking plant at the corner of Old Punt Road and the Pacific Highway.
The company is yet to make a final investment decision on the $400 million project.
"AGL has a long history in the Hunter, and we will continue to positively contribute to the region through projects like the Tomago Battery, operation of Bayswater Power Station, our Hunter Energy Hub plans at the site of the Liddell power station and our joint venture contribution to the Muswellbrook Pumped Hydro Project," the spokesman said.
"AGL has the largest renewables and storage portfolio of any ASX-listed company, having invested $4.8 billion over two decades in renewable and firming generation."
The Tomago Battery project will complement other renewable storage projects across the region, including the 850 megawatt Waratah Super Battery at the site of the former Munmorah Power Station.
The project, which received final planning approval last month, is expected to be operational in 2025.
AEMO chief executive Daniel Westerman said timely investment in the grid was needed as Australia ended its traditional dependency on coal-fired generation and faced delays on major projects including Snowy Hydro's Hunter Power Project at Kurri.
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