NSW Grid Projects Ready to Support Summer Electricity Demand

Three large battery storage projects and a statewide virtual power plant are now fully operational, with the NSW Government saying they can support electricity demand equivalent to around 400,000 homes during peak periods.

Sydney — Four major energy projects supported under the second tender round of the NSW Electricity Infrastructure Roadmap are now fully operational, strengthening the capacity of the electricity grid ahead of the summer period.

The projects comprise three large-scale battery energy storage systems and a statewide virtual power plant. Together, they can supply electricity or reduce demand when the electricity system comes under pressure, particularly during periods of extreme heat and high summer demand.

The NSW Government said the projects represent more than $1.8 billion in investment and supported more than 1,500 jobs during construction.

Three batteries and a virtual power plant

The projects include:

• Liddell Battery Energy Storage System (BESS), Muswellbrook — developed by AGL Energy, with a capacity of 500 MW and storage capacity of 1,000 MWh.
• Orana BESS, Montefiores — developed by Akaysha Energy, with a capacity of 415 MW and storage capacity of 1,660 MWh.
• Smithfield BESS, Western Sydney — developed by Iberdrola Australia, with a capacity of 65 MW and storage capacity of 130 MWh.
• Statewide Virtual Power Plant — delivered by Enel X, providing 95 MW of demand-response capacity, with a minimum dispatch duration of two hours.

The NSW Government said the four projects can collectively provide enough firming capacity to meet peak electricity demand equivalent to around 400,000 homes.

Supporting the grid during peak demand

Battery storage can absorb electricity when supply is available and release it when demand rises. This allows batteries to provide additional power during periods when the electricity network is under pressure.

The Enel X virtual power plant operates differently. Rather than generating electricity, it provides flexible demand response, allowing participating customers to reduce or adjust their electricity consumption when the grid requires additional support.

According to the NSW Government, Enel X has delivered 95 MW of flexible demand capacity, with participating customers already supporting the electricity system during the December 2025 heat event and other periods of peak demand.

Liddell battery reaches full commercial operation

AGL’s 500 MW Liddell Battery reached full commercial operations in September 2026. It is the first major development at the former Liddell Power Station site and forms part of AGL’s plans to transform the site as part of its future Hunter Energy Hub.

The company said the battery can store and dispatch electricity to support homes and businesses when required.

Meanwhile, Iberdrola Australia’s 65 MW Smithfield battery is capable of supplying electricity equivalent to the demand of around 20,000 homes in Western Sydney, according to the company. It is also designed to release stored electricity during evening peak periods.

Part of NSW’s energy transition

The projects are part of the NSW Electricity Infrastructure Roadmap, which is designed to coordinate investment in renewable generation, transmission, storage and firming infrastructure as ageing coal-fired power stations retire.

The NSW Government says firming technologies such as batteries and virtual power plants can rapidly supply electricity to the grid or reduce electricity consumption when required.

The state’s Energy Security Target Monitor has also identified the importance of new generation and storage projects as NSW prepares for future changes to its electricity supply. Its 2025 assessment said NSW had sufficient firm capacity at the time, while forecasting potential shortfalls from 2027–28 and again from 2033–34 under the assessed scenarios.

NSW Energy Minister Penny Sharpe described completion of the four projects as an important milestone for the state, saying the additional firming capacity would help support the electricity system during the coming summer.

The four projects are among the latest large-scale investments intended to provide greater flexibility to the NSW electricity system as the state increases its reliance on renewable energy and prepares for the retirement of ageing coal-fired generation.

Official source: NSW Government – Major energy grid stabilisers ready for summer