Neoen delivers Western Downs Battery Stage 2 and launches Stage 3 in Queensland, Australia

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OPRG Financial
Fabrice Baron
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Australian Media International Media
Fleishman-Hillard
Anna Kelly
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Sydney & Paris, 10 December 2025

Neoen delivers Western Downs Battery Stage 2 and launches Stage 3 in Queensland, Australia

• Neoen has provided notices to proceed to Tesla and UGL, launching construction for Western Downs Battery Stage 3 (305 MW / 1,220 MWh) in Queensland
• In addition, the construction of Stage 2 (270 MW / 540 MWh) is now complete, bringing Western Downs Battery’s current operating capacity to 540 MW / 1,080 MWh (Stage 1 and 2)
• Neoen has signed two new virtual battery contracts with ENGIE, for 25 MW / 50 MWh and 50 MW / 200 MWh, backed by the existing Stage 2 and the new Stage 3
• The launch of Stage 3 takes Neoen’s total battery storage capacity in Australia to 2 GW / 6.4 GWh in operation or under construction

Neoen, one of the world’s leading renewable energy companies, has provided notices to proceed to battery storage supplier Tesla and balance of plant contractor UGL (a member of the CIMIC Group), signaling the start of construction for Western Downs Battery Stage 3 (305 MW / 1,220 MWh). It will be Neoen’s fourth asset¹ within its Western Downs Green Power Hub, located on Barunggam country near the town of Chinchilla in Queensland, Australia. This new four-hour battery will consist of 312 Tesla Megapack 2XL units and will be equipped with grid-forming capabilities. It will connect into Powerlink’s Western Downs substation, leveraging existing infrastructure at Western Downs. The new battery is expected to start operating over the Australian summer of 2027/28.

Neoen has also delivered Stage 2 (270 MW / 540 MWh) of Western Downs Battery ahead of schedule and in time to support its virtual battery contracts with AGL Energy and Shell Energy. These bespoke Neoen agreements allow clients to hedge their own or their customer’s load by virtually charging and discharging Western Downs Battery without having to develop, build, or operate one themselves.

Neoen has signed two additional virtual battery agreements with ENGIE. The first contract for 25 MW / 50 MWh (2-hours) is supported by Western Downs Battery Stage 2, while the second contract for 50 MW / 200 MWh (4-hours) will be backed by Stage 3. Together, these agreements increase ENGIE’s contracted virtual battery capacity, helping manage the intermittency of its renewable energy generation portfolio and the flexibility of its customer load.

With a total combined capacity of 540 MW / 1,080 MWh, Western Downs Battery Stage 1 and 2 are now delivering critical grid-reliability, frequency and firming services to Australia’s National Electricity Market.

Both have grid-forming inverters, helping reduce Queensland’s reliance on coal and gas generators. Once Stage 3 becomes operational, Neoen’s Western Downs Battery will contribute a combined total of 845 MW / 2.3 GWh of storage capacity in support of the State’s energy transition.

The announcement brings Neoen’s total battery storage capacity in Australia to 2 GW / 6.4 GWh in operation or under construction in Australia, making it the country’s largest owner and operator of big batteries.

Jean-Christophe Cheylus, Neoen Australia’s CEO, said: “I congratulate the team on achieving these milestones. 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. 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. Lastly, our continued success in the region would not be possible without the support of Powerlink, AEMO, the local community and Western Downs Regional Council.”

Jules Dufournier, ENGIE Australia’s Head of Energy Management & B2B, added: ““We are delighted to sign our second and third virtual battery agreements with Neoen, showcasing ENGIE’s ability to trade innovative derivative products that create real value for our customers. This agreement complements our existing battery portfolio, enabling us to offer shaped products and tailored solutions that meet our clients’ specific needs. By combining market innovation with flexibility, ENGIE continues to help customers achieve their sustainability goals while navigating Australia’s dynamic energy landscape.”

Xavier Barbaro, Neoen’s Group CEO, concluded: “We are proud to be making an ongoing contribution to Queensland’s energy future through the expansion of our Western Downs Green Power Hub, which will eventually consist of 1.3 GW of capacity across solar and storage. This expansion is underpinned by the strength and value of our virtual battery solution, and we are delighted to count Engie among our customers. Western Downs provides us with an inspiring template for growth in other regions, as we continue to accelerate the pace of the energy transition in Australia, and around the world.”

About Neoen

Founded in 2008, Neoen is one of the world’s leading renewable energy companies, with expertise in solar, onshore wind power and battery storage. Neoen plays an active role in accelerating the energy transition of the countries where it operates by delivering clean, competitively priced local energy. Neoen’s total global capacity in operation or under construction stands at 8.5 GW. A high-growth company, Neoen intends to install another 10 GW by 2030. Neoen is managed by an international team of experts led by Xavier Barbaro, Director of BRHL UK Holdings Ltd and BRHL UK Midco Ltd, President of Cartusia S.A.S., Group CEO.

Neoen operates close to 200 assets across three continents. Its flagship assets include Western Downs Green Power Hub in Australia, comprised of the country’s largest solar farm (460 MWp) and Western Downs Battery (540 MW / 1,080 MWh); Collie Battery (560 MW / 2,240 MWh) one of the world’s most powerful large-scale storage systems; France’s most powerful solar farm (300 MWp) in Cestas; and Finland’s largest wind farm (404 MW) in Mutkalampi.

For more information: www.neoen.com

Contact

Neoen
communication@neoen.com

OPRG Financial
Fabrice Baron
+33 1 53 32 61 27
fabrice.baron@omc.com

Australian Media International Media
Fleishman-Hillard
Anna Kelly
+61 407 847 775
anna.kelly@omc.com

Notes

1. Neoen’s Western Downs Green Power Hub already consists of a 460 MWp operating solar farm, and Western Downs Battery Stage 1 and Stage 2 (both sized at 270 MW / 540 MWh).