The first phase of Queensland's new clean energy initiative, located near the coal-fired Kogan Creek power plant, has been successfully brought online. CS Energy's 100 MW / 200 MWh Chinchilla battery energy storage system has completed its commissioning and is now fully operational. This marks a significant step in Queensland's shift towards renewable energy, with the project aimed at bolstering the reliability of the state's electricity grid during periods of high demand.
Owned by the Queensland government, CS Energy has invested $150 million in the Chinchilla battery, which is connected to the grid through Powerlink’s 275 kV Western Downs substation. The battery, which began participating in the National Electricity Market in July 2024, is equipped with 80 Tesla Megapack modules that use lithium iron phosphate (LiFePO4) technology. This setup allows the battery to store excess solar energy generated during the day and discharge it during peak demand in the evening.
The Chinchilla battery's strategic location next to the Kogan Creek Power Station enables it to utilize the site's existing grid connection, water resources, available land, and workforce. This proximity also provides CS Energy's employees with opportunities to gain new skills and training as the energy sector undergoes transformation.
Batteries like the one at Chinchilla are expected to play a critical role in Australia's power grid by responding rapidly to sudden supply gaps, thus reducing wholesale price volatility. Additionally, these batteries support a greater uptake of renewable energy by charging during times of solar energy surplus and discharging when demand is highest.
This project is the first to be completed within the Kogan Clean Energy Hub, which also plans to include a 400 MW gas peaking power plant and a renewable hydrogen demonstration plant. The gas plant, initially operating on a blend of 35% renewable hydrogen, aims to transition to 100% hydrogen in the future, further reducing Queensland's reliance on fossil fuels. The hydrogen plant, expected to be commissioned later this year, will produce approximately 75 tonnes of green hydrogen annually using a 1 MW electrolyser powered by a 2 MW solar farm.
The successful launch of the Chinchilla battery underscores CS Energy's commitment to innovation and environmental stewardship, setting a new standard for future renewable energy projects in Queensland.