Neoen has launched construction of the 305MW/1220MWh Western Downs Battery Stage 3 in Queensland after issuing notices to proceed to Tesla and UGL.
The developer said it has also completed the 270MW/540MWh Stage 2, bringing Western Downs Battery’s operating capacity across its first two stages to 540MW/1080MWh.
The new four-hour Stage 3 battery will use 312 Tesla Megapack 2XL units with grid-forming capability and is expected to start operating over the Australian summer of 2027/28, Neoen added.
Stage 2 was delivered ahead of schedule to support Neoen’s virtual battery contracts with AGL Energy and Shell Energy.
Neoen has also signed two new virtual battery agreements with Engie for 25MW/50MWh and 50MW/200MWh, backed respectively by Stage 2 and Stage 3.
The company said the first two stages are now providing grid-reliability, frequency and firming services to the National Electricity Market, with both featuring grid-forming inverters.
Once Stage 3 is operational, Western Downs Battery will total 845MW/2.3GWh of storage capacity in support of Queensland’s energy transition, according to Neoen.
The announcement lifts Neoen’s total Australian battery storage portfolio to 2GW/6.4GWh in operation or under construction.
“I congratulate the team on achieving these milestones,” said Jean-Christophe Cheylus, Neoen Australia’s chief executive officer.
“The launch of this new 4-hour battery at Western Downs further highlights Neoen’s innovation and leadership in big batteries and takes us past 2 GW of storage capacity in Australia.”
“We’re delighted to have signed two new contracts with Engie, and I thank them for placing their trust in us once more,” he added.
“Stage 3 of Western Downs Battery is our 7th storage project with Tesla and UGL and we look forward to switching it on together soon.”


