Neoen marks a milestone in Australia’s energy transition with the launch of its 164 MW/905 MWh Muchea Battery project and the delivery of the 341 MW/1,363 MWh Collie Battery Stage 2.
The Muchea Battery is the Australia’s first six-hour grid-scale battery. It will use 252 Tesla Megapack 2XL units and connect to the South West Interconnected System (SWIS) at the Muchea substation.
Collie Battery 2, on the other hand, has been delivered on time to the Australian Energy Market Operator (AEMO). This marks the start of operations under contract with AEMO as from October 1, 2025. Marking its start, Collie’s first delivery to the AEMO will be 300 MW/4-hour grid capacity as per the service contract.
With these additions, Neoen’s storage portfolio in Western Australia increases to 724 MW/3,145 MWh. This, according to the company, represents more than AUD 1 billion invested to date in Western Australia’s clean energy infrastructure.
Additinally, Western Australia’s government-owned electricity utility, Synergy, is developing a 500 MW/2,000 MWh battery storage project, also with the name, Collie. Often referred to as Synergy’s Collie, the (different) BESS project expects to start operations in late 2025.
Muchea Battery Storage Project Factsheet
Developer: Neoen
Location: Muchea, WA
Capacity: 164 MW/905 MWh
EPC Contractor: UGL
Technology Use: 252 Tesla Megapack 2XL units
Jobs: 70 during construction
Status: Under development
Neoen’s Collie Battery Stage 2 Project Factsheet
Developer: Neoen
Capacity: 341 MW/1,363 MWh
Commissioning: September 2025
Status: Operational
Grid Connection: Operates under contract with AEMO
Neoen’s Battery Storage Project Timelines
2021-2022: Neoen starts early development of grid-scale storage pipeline in Western Australia (WA)
Nov 2023: Collie Battery Stage 1 (219 MW/877 MWh) begins construction
Feb 2024: State approves Muchea Battery (164 MW/905 MWh)
2024-2025: Procurement of Tesla Megapack 2XL units starts. EPC partner, UGL, also selected
Q3 2025: Muchea construction starts. Neoen also issues Notices to Proceed
Sep 2025: Collie Battery Stage 2 commissioned
Oct 2025: Official launch of Muchea Battery and delivery of Collie Battery 2
Market and Regional Impact of Neoen’s Battery Storage Projects
Western Australia’s South West Interconnected System (SWIS) has seen a rise in renewable penetration. Invariably, this requires new flexible resources. Battery storage projects like Muchea and Collie are also important in balancing intermittent solar and wind generation, and thus, reduce reliance on gas peakers. This also reduces blackout tendencies during peak demand periods.
The Muchea and Collie battery storage projects are also a highlight of Neoen’s AUD 1 billion plus, investment in WA. This continues to position the company as one of WA’s largest renewable investors.
Additionally, the Muchea project, in particular, represents a world-leading six-hour duration battery. The commissioning of the Collie battery on the other hand comes amid increasing demand for grid-scale storage across Australia, where the federal and state governments are using energy storage to align with 2030 renewable targets. Australia also awarded 20 renewable energy projects under its CIS Tender 4, with total capacity surpassing 6 GW target on October 9, 2025.
Also, at the community level, Neoen has put in place benefit-sharing agreements worth AUD 2 million. This, together with jobs created during construction, signal fostered local support for renewables in the state.
