Tesla Secures $133M Megapack Deal to Expand Queensland’s Largest Battery Storage Site

Tesla has secured a $133 million contract to supply 140 Megapacks for the expansion of Queensland's Western Downs battery storage site. This expansion will boost the facility’s capacity to 540 MW/1,080 MWh, solidifying its position as the largest battery project in the state.

Tesla to Deliver 140 Megapacks in $133M Deal, Doubling Capacity of Australia’s Largest Battery by 2026

Tesla's most recent commitment to developing new energy storage sites and expanding existing ones is acquiring another Megapack contract in Australia.

According to a report from Renew Economy, the contract will supervise the recently completed expansion of the Western Downs battery in Queensland, Australia. This expansion will increase the energy storage site's capacity to 540 MW / 1,080 MWh. Developers anticipate that the project's second stage will be operational by 2026, and Tesla will supply 140 Megapack units for the project, which are expected to be valued at approximately $133 million.

French renewables company Neoen operates the site under a 10-year agreement with AGL Energy, the nation's main coal generator. The contract establishes the inclusion of Tesla Megapack power, which will expand Queensland's largest battery project—at least for now.

“The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” said AGL COO Markus Brokhof. “Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”

Neoen Expands Australia's Energy Storage Leadership with Innovative ‘Virtual Battery’ Solutions and Major Projects

According to Teslarati, Neoen's CEO, Xavier Barbaro, has also emphasized the company's involvement in numerous recent battery energy storage system (BESS) initiatives in Australia.

“Neoen is proud to have developed the ‘virtual battery’ offer in Australia, providing a bespoke, smart, value-added product that meets the increasing needs of our customers,” Barbaro said. “Over the past seven years, Neoen has been a leading player in storage in Australia and around the world, and we will continue to design and deliver integrated solutions to accelerate the energy transition.”

Neoen is currently in operation or under construction in Australia and can store up to 1,925 MW / 4,709 MWh of energy.

The Western Downs site is presently the largest battery project in Australia. However, an additional expansion at the Stanwell battery is anticipated to increase the existing energy storage system to 300MW/1,200MWh, making it the state's largest. Additionally, the state government allocated $448.2 million to the expansion, which is being built closely during scheduled operations.

Tesla continues to operate several Megapack initiatives in various Australian states, such as Victoria, New South Wales, and Western Australia.