ENGIE Reaches Financial Close for 150 MW Hazelwood Battery Expansion in Australia

ENGIE announced on October 16, 2026, that it has achieved financial close for the second phase of the Hazelwood Battery Energy Storage System (HBESS 2) in Gippsland, Victoria, Australia. The expansion will add 150 MW of power capacity and 300 MWh of energy storage at the former Hazelwood Power Station site.

The project builds on the existing 150 MW/150 MWh Hazelwood battery, which began operations in 2023. Once the expansion is completed, the facility will have a combined capacity of 300 MW/450 MWh, strengthening its role in supporting Victoria's electricity grid and renewable energy transition.

Sungrow and Elecnor Secured for Construction

ENGIE confirmed that Sungrow will supply the battery storage technology, while Elecnor will undertake balance-of-plant and associated infrastructure works. Key project contracts have been executed, with construction scheduled to begin later in 2026 and commercial operations targeted for 2028.

The project will use existing electricity connections and infrastructure at the former coal-fired power station site. According to the Victorian Government, the expansion is expected to create up to 370 construction jobs and support the redevelopment of Hazelwood into a clean energy hub.

Victorian Government Grants Transmission Operator Status

Alongside ENGIE's financial close announcement, the Victorian Government confirmed that Hazelwood BESS Line Co Pty Ltd had been designated as a Declared Transmission System Operator.

The designation allows the expansion to use existing transmission infrastructure, supporting the project's integration with Victoria's electricity network.

The government stated that the completed battery facility would have sufficient combined storage capacity to supply the equivalent of approximately 500,000 homes for up to 90 minutes.

Part of Victoria's Broader Energy Jobs Plan

The Hazelwood battery expansion supports the Victorian Government's broader Energy Jobs Plan, which aims to create 68,000 energy jobs, including 37 percent in regional Victoria.

According to the government, the plan is expected to generate more than USD 12.54 billion in wages for regional communities between 2026 and 2040, including approximately USD 3.22 billion in Gippsland.

The Hazelwood expansion itself is expected to support up to 370 construction jobs, contributing to the region's transition from coal-fired generation to renewable energy infrastructure.

Supporting Victoria's Renewable Energy Transition

Laura Caspari, CEO and Managing Director of Renewables and Batteries at ENGIE ANZ, said the expansion responds to growing demand for battery storage capable of absorbing low-cost solar electricity during the day and supplying it during periods of higher evening demand.

The additional capacity will help support grid flexibility and renewable energy integration in Victoria, particularly as the state prepares for the planned closure of the Yallourn Power Station.

The Hazelwood site previously housed a coal-fired power station that closed in 2017. ENGIE has since continued rehabilitation activities while developing new energy infrastructure at the location.

The company said the Hazelwood expansion forms part of its broader effort to create long-term infrastructure assets that strengthen energy security and support local communities. The project is expected to begin commercial operations in 2028.