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Energy transition underway as Liddell unveils 1,000 MWh battery

March 23, 2026 5:41 am in by
Batteries at AGL's Liddell Power Station. Image: Cameron Smith

One of Australia’s largest grid‑scale batteries is nearing operation at the former Liddell Power Station site near Muswellbrook, marking a major milestone in the Hunter’s energy transition.

Construction of the 500‑megawatt, 1,000‑megawatt‑hour Liddell Battery is now complete, with commissioning underway ahead of a targeted mid‑year start. Once operational, the battery will be capable of supporting power supply for around 200,000 homes for up to two hours.

The project has received $35 million in Federal Government funding through the Australian Renewable Energy Agency, alongside long‑term revenue underwriting from the NSW Government under a Long Term Energy Service Agreement awarded in late 2023. Additional state funding was also provided to accelerate grid connection works.

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NSW Energy Minster Penny Sharpe, Hunter MP Dan Repacholi, Assistant Energy Minister Josh Wilson, AGL CEO Damien Nicks, and Muswellbrook Mayor Jeff Drayton with custom coasters made from recycled steel at AGL’s Liddell Power Station. Image: Cameron Smith

NSW Climate Change and Energy Minister Penny Sharpe said the battery would help replace retiring coal generation while maintaining reliability. She said the project would also put downward pressure on electricity prices and support jobs across the Hunter‑Central Coast Renewable Energy Zone.

NSW Energy Minster Penny Sharpe. Image: Cameron Smith

At its construction peak, the project employed more than 600 workers, with a strong focus on apprentices, local suppliers and First Nations businesses. The battery will store excess renewable energy generated during the day and dispatch it during periods of high demand, helping stabilise the National Electricity Market as renewable generation continues to grow.

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