Neoen notches milestones for more than 2.2 GWh of battery storage in WA

Renewables developer Neoen has commenced construction of its first six-hour battery energy storage system and has also delivered Australia’s biggest battery to date – four months ahead of schedule.

October 1, 2025 David Carroll

Image: Neoen Australia

Renewable energy and storage developer Neoen announced it has started construction of the 164 MW / 905 MWh Muchea battery energy storage system and has also delivered the 341 MW / 1,363 MWh second stage of the Collie Battery project, both in Western Australia.

The Muchea battery is being built near the town of the same name, about 43 kilometres northeast of state capital Perth. The system will include 252 Tesla Megapack 2XL units and will connect into Western Power’s existing Muchea substation in the South-West Interconnected System (SWIS). It is backed by a Capacity Investment Scheme agreement with the Australian government.

Neoen, owned by Canadian global asset management company Brookfield, said the project is its first six-hour long-duration storage asset and once operational, will deliver critical grid stability and reliability services in Western Australia.

“It will provide essential peak demand energy capacity along with grid stability and reliability services, enabling the integration of more renewable energy into the network,” the company said.

Neoen said the Muchea battery is expected to deliver 70 new jobs during construction as well as economic opportunities for local businesses.

UGL, a member of the CIMIC Group, has been contracted by Neoen to help design, install, and connect the Muchea battery. Following installation, UGL will provide testing and commissioning support.

The project comes immediately after the successful delivery of Neoen’s 341 MW / 1,363 MWh Collie Battery Stage 2 in the state’s southwest.

The Collie project, sized at 560 MW / 2,240 MWh over the two stages, is currently the biggest battery in operation in Australia with Neoen noting it is capable of charging and discharging the equivalent of 20% of the average demand in the SWIS.

Neoen said the second stage of the system has commenced operations less than 15 months since the start of construction, delivering on its two-year grid capacity service contract with the Australian Energy Market Operator (AEMO).

The developer said the contract will help address risks associated with the retirement of coal-fired power plants, high penetration of rooftop solar and increasing energy demand in Western Australia.

Jai Thomas, Energy Policy WA’s Coordinator of Energy, said the integration of new clean energy generation and battery storage projects is a crucial part of the state’s energy transition and its journey to becoming a renewable energy powerhouse.

The Muchea and Collie battery milestones boost Neoen’s total storage capacity in Western Australia to 724 MW / 3,145 MWh, representing more than $1 billion in investment in the state since 2022.

“The pace at which we have grown and delivered storage in Western Australia is a reflection of the Neoen team’s disciplined focus, the strength of our relationships with Tesla, UGL, Western Power and AEMO, and the trust that we have nurtured with our host landowners and the local community,” Neoen Australia Chief Executive Officer Jean-Christophe Cheylus said in a statement.

“I applaud the dedication of everyone who has brought Collie Battery online so quickly and look forward to Muchea Battery joining it to support the WA grid.”

Neoen’s total Australian portfolio of storage capacity currently in operation or under construction has now reached 1.7 GW / 5.1 GWh. Its total global capacity in operation or under construction stands at 8.4 GW. Neoen intends to install another 10 GW by 2030.

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