Origin Energy Limited has taken a final investment decision on the first stage of a large-scale battery at the Eraring Power Station, committing to an investment of approximately $600 million.
The company said on Thursday that works were due to commence in coming weeks.
Stage one will involve the construction of a 460 MW battery storage system with a dispatch duration of two hours, anticipated to come online in the final quarter of the 2025 calendar year.
Origin has the option to increase the battery to 700 MW and four hours dispatch duration in the future.
"Approval of the Eraring battery is an important milestone for Origin and another significant step in our strategy to lead the energy transition and accelerate renewable energy and storage in our portfolio," Origin chief executive Frank Calabria said.
"We are pleased to make this significant capital investment in Origin's first major battery project to support the growth in renewable energy that's occurring across the NEM, together with the expansion of our own portfolio of renewable energy developments."
Origin's head of energy supply and operations, Greg Jarvis said Earing was a strategic site with high quality connection infrastructure that enabled the delivery of energy into major demand centres.
"Development of the Eraring battery is a key next step as the company looks to transform the Eraring site for the future, given our intention to exit coal-fired generation by as early as August 2025," he said.
"We are grateful for the strong support Origin has received from the local community and other stakeholders, and we look forward to working with our key contractors to deliver the Eraring battery safely and expeditiously, consistent with the conditions of approval granted by the NSW Government," Mr Jarvis said.
The Eraring battery project received initial planning approval from the NSW Department of Planning and Environment in May 2022.
Battery equipment will be supplied by Finnish technology group Wrtsil, which operates globally, while design and construction services will be provided by Enerven, a subsidiary of SA Power Networks.
Eraring is Australia's largest power station, supplying around a quarter of NSW's energy needs. It is Origin's only coal-fired generator.
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