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ENGIE reaches financial close on Hazelwood battery expansion, doubling the former coal site's storage to 300 MW and 450 MWh

ENGIE has reached financial close on a 150 MW / 300 MWh expansion of the Hazelwood battery in Victoria's Latrobe Valley, taking the decommissioned coal plant site's total installed battery capacity to 300 MW / 450 MWh. Construction starts later this year with commercial operations targeted from 2028.

By Greener Numbers Editorial Team · Published October 21, 2026 · Updated 10/21/2026

ENGIE announced on October 16, 2026 that it has reached financial close on the Hazelwood Battery Energy Storage System expansion, known as HBESS 2, at the former Hazelwood Power Station in Victoria's Latrobe Valley, Australia.

The project adds a further 150 MW / 300 MWh of battery storage to the site, building on the existing 150 MW / 150 MWh Hazelwood battery, which has been operating since 2023. Once complete, the expansion lifts the site's total installed battery capacity to 300 MW / 450 MWh, which ENGIE says reinforces Hazelwood's role as a source of flexible energy infrastructure for Victoria and the National Electricity Market.

Laura Caspari, ENGIE ANZ's CEO and Managing Director of Renewables and Batteries, said the expansion is underpinned by strong customer demand for battery storage, driven by its ability to store low-cost solar generation during the day and dispatch it during periods of higher evening demand.

Construction is scheduled to begin later this year, with commercial operations targeted from 2028. The Hazelwood Power Station, a brown coal plant, closed in 2017, and the site has been progressively repurposed for energy infrastructure.

The figures here are ENGIE's own project announcements. The company has not published a capital cost for the expansion in this release, and the 2028 operation date is a target, not a commitment with a stated penalty structure.

Official source: engie.com.au ↗