AGL Energy has taken its final investment decision (FID) for the Tomago battery energy storage system (BESS). Once completed, this innovative energy project will deliver 500 MW of capacity and 2,000 MWh of energy in Newcastle, New South Wales. This strategic move is part of a larger overarching commitment to continue to build and create renewable energy solutions in Australia. The project—which has an estimated construction cost of A$800 million (about $518 million)—will have a big reach. It will continue to be a major player in our transition to a more sustainable energy portfolio.
Construction of the Tomago facility will start in late 2025. From this point, we look forward to their operations commencing by late 2027. This ambitious project includes two things to set AGL’s grid-scale battery assets apart. These assets are essential to fulfill the increasing demand for renewable energy innovations across the country.
Advanced Technology and Collaboration
The Tomago project will use Fluence’s Gridstack Pro, a provably secure and efficient utility-scale energy storage solution that enables smarter, more agile energy management. This project is the third joint effort between Fluence and AGL to deploy large-scale battery systems. It beautifully renders their long-standing collaboration to build and maintain the national renewable energy infrastructure.
AGL’s executive Damien Nicks said this project was one of the most important investments.
“The final investment decision on the Tomago battery project marks yet another significant milestone in AGL’s delivery of its strategy and the transition and decarbonisation of its energy portfolio.” – Damien Nicks
AGL is intent on reinforcing its status as an industry leader in the field of renewable energy. This initiative will further contribute to achieving Australia’s wider sustainability objectives.
Future Prospects and Existing Projects
AGL Energy recently acquired full ownership of South Australia’s virtual power plant (the SAVPP) from Tesla. This purchase took place in July 2025 and it is in conjunction with the Tomago project. Since launch in 2018, SAVPP has rapidly grown to be one of the largest virtual power plants in Australia. This tremendously increases AGL’s operational flexibility to efficiently integrate renewable energy resources on a system-wide basis.
Fluence has previously completed the 50 MWh Broken Hill BESS and is currently constructing the 1,000 MWh Liddell BESS, showcasing its expertise and commitment to developing large-scale battery systems. Assuming a Tomago battery is rated for 20 years. This ensures long-term, reliable energy storage.
“Once operational, the Tomago battery will expand on AGL’s existing suite of grid scale battery assets and contracted capacity from third parties and further enhance our flexible asset portfolio.” – Damien Nicks
Commitment to Renewable Energy
Fluence’s senior vice-president and president for APAC, Jan Teichmann, underscored the importance of this project in supporting AGL’s renewable energy ambitions.
“This project strongly demonstrates Fluence’s ongoing commitment to support AGL in their ambitious plan to deploy large-scale battery storage systems for a renewable energy future across Australia.” – Jan Teichmann
The Tomago BESS is an important achievement for AGL Energy. It’s a great way to show off the company’s deep commitment to delivering a sustainable, clean energy landscape to Australia. As construction begins in late 2025, stakeholders will be closely monitoring the project’s progress and its impact on the renewable energy sector.