1GWh battery energy storage system gets green tick to start construction in NSW

The United States-headquartered long-duration storage company Energy Vault-owned 125 MW / 1,000 MWh Stoney Creek Battery Energy Storage System (BESS) has secured New South Wales (NSW) government planning approval, opening the way to begin construction.

Site works and mobilisation are expected to begin in Q4 2026 with commercial operations expected in H1 2028, when Energy Vault plans to utilise its VaultOS energy management platform to optimise asset performance, market participation and lifecycle operations.

Approximately 191 containerised lithium-ion battery units will be deployed along with 64 inverters, and the project will connect to the nearby Narrabri 132/66 kV substation.

To be developed by Australian-owned design, delivery and operation of BESS specialist Enervest, the 4-acre Stoney Creek BESS will provide eight-hours of dispatchable storage.

Located near Narrabri approximately 525 kilometres northwest of Sydney, the BESS is supported by a 14-year Long-Term Energy Service Agreement (LTESA) awarded through the Australian Energy Market Operator (AEMO) Services Limited under the NSW Electricity Infrastructure Roadmap.

The 14-year LTESA and anticipated merchant revenues are anticipated to support approximately $36-$43 million (USD $25-$30 million) in annual recurring revenue once operational.

Energy Vault Chief Revenue OFficer Marco Terruzzin said Stoney Creek is the company’s build, own and operate strategy in action.

“We are progressing a large-scale storage project toward delivery while retaining the long-term economics through ownership and operation,” Terruzzin said.

“Once operational, Stoney Creek is expected to provide critical dispatchable capacity to New South Wales while contributing recurring revenue to Energy Vault.”

Enervest Chief Executive Officer Ross Warby said achieving planning approval is a significant milestone for Enervest and Energy Vault.

“Clear planning pathways help bring forward investment in the infrastructure NSW needs for a reliable electricity supply. We also acknowledge AEMO Services for its leadership in supporting long-duration storage,” Warby said.