Australian utility Origin Energy has approved the construction of a 300MW BESS project at Mortlake power station in south-west Victoria.

The battery storage system will be operational by late 2026 and entails an investment of A$400m ($263m).

It is expected to provide an output of 650MWh.

Situated in Victoria’s South West Renewable Energy Zone, the BESS project will contribute to grid stability by storing excess power during high renewable generation periods and releasing it during peak demand times.

Mortlake is the state of Victoria’s largest gas-fired power station, with 566MW of generating capacity. It operates using gas sourced from the Otway Basin.

Origin CEO Frank Calabria stated: “The Mortlake battery is another significant step in our ambition to lead the energy transition through cleaner energy and customer solutions. 

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“Origin’s strategy is to accelerate renewable energy and storage in our portfolio and we expect large-scale batteries and other storage technologies to play a vital role in Australia’s energy transition. Today’s announcement follows our decision last year to approve Origin’s first large-scale battery at Eraring, which is currently under construction.”

Fluence Energy, an energy storage solutions provider, has been selected by Origin Energy to supply the 300MW/650MWh battery system for the Mortlake power station.

The company will provide its Gridstack energy storage product and a 15-year service agreement to support Origin’s renewable energy and storage strategy.

Fluence’s artificial intelligence (AI)-driven asset performance management software, Nispera, will be employed to enhance the battery’s operational efficiency.

The initial stages of the Mortlake battery project, including site preparation and civil works, will begin when detailed design and procurement processes are complete.

Fluence president and CEO Julian Nebreda stated: “We are honoured to be selected by Origin to deliver this grid-forming battery-based energy storage system and deploy our ecosystem of solutions.

“Australia is an important market for Fluence. Our local team is now delivering over 1GW [of] energy storage projects within Australia to enhance grid stability and enable the country’s clean energy transition.”

In December 2023, Origin Energy announced that it is investing £280m ($355.76m) to increase its stake in Octopus Energy, a UK-based utility, from 3% to 23%.

Octopus Energy secured $800m in the funding round, which also saw participation from Tokyo Gas, the Canada Pension Plan Investment Board and Generation Investment Management.