AEMO advances Narrabri's Stoney Creek BESS

Global energy storage company Energy Vault has secured a 14-year Long-Term Energy Service Agreement (LTESA) for its 125 MW, 1 GWh Stoney Creek BESS (battery energy storage system) in Narrabri, New South Wales.

An LTESA is a financial instrument that addresses electricity price risk in order to speed up investment in built energy. The Australian Energy Market Operator (AEMO) Services formulated the LTESA mechanism specifically for NSW, in recognition of the state’s pressing need to transition to renewables given the scheduled retirement of its coal-fired generation fleet.

The Stoney Creek LTESA has been awarded under the NSW Roadmap Tender Round 5 for Long Duration Storage.

Developed in partnership with Australian energy developer Enervest, the Stoney Creek BESS will be one of the largest eight-hour long-duration battery systems in Australia, the companies said. It is also expected to be one of the first Australian projects in Energy Vault’s portfolio of ‘Owned & Operated’ projects.

“The Stoney Creek project serves as an important regional milestone at large scale that demonstrates execution of our ‘Own & Operate’ growth strategy,” said Robert Piconi, Chairman and Chief Executive Officer, Energy Vault.

“We are quickly advancing this new market segment since announcing the strategy last May and view the Australian market as a large and important growth driver in building, maintaining and operating energy storage systems.”

Given its size, Stoney Creek BESS is set to play a significant role in the state’s energy strategy, providing large-scale, dispatchable storage capacity to support grid reliability and renewable integration. Now that the project site is fully secured, with regulatory approvals and permits progressing positively, the BESS is ready to commence pre-construction activities and final design approvals.

“Stoney Creek BESS being awarded the LTESA is a pivotal step in delivering critical infrastructure that drives Australia’s energy transition, economic growth and long-term system reliability,” said Ross Warby, Chief Executive Officer, Enervest.

“The partnership with Energy Vault early in the project development and final bid submission last year ensured we would have a comprehensive and successful bid with a proven global leader in energy storage solutions and operations. We recognise AEMO Services’ leadership in advancing projects that strengthen Australia’s energy future, as well as consortium partner Energy Vault’s expertise in battery technology, software and system design.”

The project is expected to create 150 jobs at peak construction, with four full-time operational roles post-completion. Site mobilisation, pre-construction and procurement activities are planned for the second half of 2025 following final procedural and DA approvals.

Enervest and Energy Vault acknowledged the Traditional Owners of the land on which the project will be developed and expressed their commitment to working closely with Indigenous communities, local councils and community groups to maximise the long-term benefits of Stoney Creek BESS for the region.

Image credit: iStock.com/sarawuth702. Stock image used is for illustrative purposes only.