The New South Wales government has granted planning approval for Energy Vault’s Stoney Creek Battery Energy Storage System (BESS), a significant 125 MW / 1,000 MWh project set to bolster the state’s energy grid. The approval, announced this week, marks a crucial step in delivering dispatchable power and enhancing grid stability for the region, with site works slated to commence in the fourth quarter of 2026.
Located near Narrabri, approximately 525 kilometres northwest of Sydney, the Stoney Creek BESS is designed to provide eight hours of energy storage, a critical capability as NSW accelerates its transition to renewable energy. Commercial operations are projected to begin in the first half of 2028.
US-based Energy Vault, in collaboration with Australian-owned Enervest, is developing the project. Its strategic importance is underscored by a 14-year Long-Term Energy Service Agreement (LTESA), secured through AEMO Services Limited as part of the NSW Electricity Infrastructure Roadmap. This agreement, combined with anticipated merchant revenues, is expected to generate between AUD 36 million and AUD 43 million in annual recurring revenue once the battery is operational.
“The Stoney Creek BESS represents a significant investment in New South Wales’ energy future, providing essential firming capacity to support our growing renewable energy fleet and ensuring reliable power for homes and businesses.”
The project will integrate approximately 191 containerised lithium-ion battery units and 64 inverters, connecting to the existing Narrabri 132/66 kV substation. Energy Vault’s proprietary VaultOS energy management platform will be employed to optimise the asset’s performance, market participation, and lifecycle operations.
Strengthening the NSW Energy Transition
The approval of the Stoney Creek BESS comes at a pivotal time for the National Electricity Market (NEM), as it grapples with the retirement of ageing coal-fired power stations and the increasing integration of intermittent renewable sources like solar and wind. Large-scale battery projects are vital for providing the flexibility and resilience needed to maintain a stable and affordable electricity supply.
This development aligns with broader efforts across Australia to fortify energy infrastructure and support the uptake of clean energy. The federal government, through initiatives like the Small-scale Renewable Energy Scheme, continues to incentivise solar installations, both for households and increasingly for businesses. For those looking to understand the financial incentives available for energy upgrades, exploring a comprehensive guide to Australian energy rebates can provide valuable insights.
Australia’s Growing Battery Landscape
The Stoney Creek BESS is one of several large-scale battery projects either operational or under development in NSW, reflecting a national push towards greater energy storage capacity. These projects are crucial not only for grid stability but also for enabling consumers to further electrify their homes in 2026, reducing reliance on fossil fuels and lowering household energy bills.
For context, Australia’s largest operational battery by power output, the Waratah Super Battery in NSW, recently reached full operational capacity, providing 1,680 MWh of storage. The Stoney Creek project, while slightly smaller in capacity, represents a substantial addition to the state’s dispatchable energy resources.
| Battery Project | State | Power (MW) | Energy (MWh) | Status (as of Oct 2026) |
|---|---|---|---|---|
| Stoney Creek BESS | NSW | 125 | 1,000 | Planning Approved, Site Works Q4 2026 |
| Waratah Super Battery | NSW | ~840* | 1,680 | Fully Operational |
| Terang BESS | VIC | 100 | 200 | Commissioned |
*Note: Waratah Super Battery is rated at 850MW / 1680MWh. The 840MW figure is an approximation of its power output.
The rapid expansion of battery storage is a testament to Australia’s commitment to its renewable energy targets. As more utility-scale batteries come online, they complement the record-breaking uptake of rooftop solar and home battery systems, as recently highlighted by the Clean Energy Council’s H1 2026 report. This integrated approach is essential for a secure and sustainable energy future.
While this project focuses on grid-scale storage, understanding home battery solutions can also significantly impact energy independence. For homeowners considering how to leverage their solar power more effectively, resources like Secure Your $3,500+ Home Battery Rebate: Federal Discount Reduces Jan 1, 2027 offer guidance on maximising savings and optimising energy use.
The Stoney Creek BESS is poised to play a critical role in NSW’s energy landscape, contributing to a more resilient grid and fostering greater confidence in renewable energy investment across the country.