French renewable energy and storage developer Neoen has secured a 197MW, four-hour capacity services contract for the South-West Interconnected System (SWIS).

The Australian Energy Market Operator (AEMO) has awarded the contract, in a competitive tender initiated by the Western Australian Coordinator of Energy.

The AEMO’s non-co-optimised essential system services (NCESS) contract is valid for a period of two years starting from October 2024.

Under the contract, Neoen will deliver the services for the first stage of Collie Battery, sized at 219MW/877MWh, featuring 224 Tesla Megapack 2XL units.

The battery storage facility will be built near the town of Collie, on the country of the Wilman people of the Bibbulmun nation, in the south-west region of Western Australia (WA).

Neoen Australia CEO Louis de Sambucy said: “We are delighted to have won an NCESS contract and would like to thank AEMO, Western Power and the WA Government for placing their trust in us.

“This is an exciting time for Neoen as it is our first major project in WA, and it also means we now have a big battery in five of the six Australian states.

“With our growing team in Perth and a strong pipeline of projects, we look forward to playing an increasingly significant role in the state’s rapid decarbonisation.”

Collie Battery represents Neoen’s first battery with a four-hour long duration, its first major project in Western Australia and the sixth largest battery in Australia.

Initiated in 2021 and approved for a total of 1GW/4GWh capacity in December last year, the project is expected to be operational in the fourth quarter of 2024.

It will be connected to Western Power’s Shotts Terminal substation, a part of the SWIS.

Collie Battery is expected to provide 197MW of storage capacity for four hours, charging during the day and then discharging across the evening peak.

The project would deliver a significant economic boost to the Shire of Collie, by creating more than 120 construction jobs and opportunities for local suppliers, said the company.

Western Power CEO Sam Barbaro said: “Western Power is working collaboratively with proponents to ensure that we expedite the transition of our network to a sustainable energy system that paves the way for community and industry to reach their decarbonisation goals.

“Connecting renewable energy solutions, such as Neoen’s large-scale battery, are critical to unlocking a cleaner energy future, that allows renewable resources to be effectively harnessed and utilised to meet the community’s power needs now and into the future.”