AGL has announced plans to build a 500 megawatt battery storage system at the Liddell power station site.
The Liddell battery project is part of a 850 megawatt multi-site integrated battery system AGL will develop by 2024 as part of its commitments to new sources of electricity supply.
Chief operating officer, Markus Brokhof said battery technology had evolved rapidly over the past decade and had reached an investment level that allowed AGL to lead the transition to decarbonisation in Australia.
"Battery storage is critical to enhance the energy system's flexibility and support the ongoing integration of renewable sources to the national energy market," Mr Brokhof said.
"It removes one of the biggest limiting factors of renewables, by providing electricity anytime but particularly during peak demand.
"For a long time AGL led the way in renewable investment. As more renewables come into the energy system, we need to make sure we are supporting the development of storage and firming capacity, like grid-scale batteries."
AGL's support of grid-scale battery projects include Wandoan (100 megawatt), Maoneng (4 x 50 megawatt) and Dalrymple (30 megawatt).
"We believe battery technology is now at a level that allows AGL to lead in Australia's transition to a smarter and more efficient energy future," Mr Brokhof said.
The Nature Conservation Council welcomed AGL's plans to significantly expand its investment in grid-scale storage.
"The symbolism of converting Liddell coal-fired power station site into a major battery for clean energy storage could hardly be more powerful," Nature Conservation Council chief executive Chris Gambian said.
"AGL clearly sees the end of coal as inevitable. The only question now is the speed of the transition.
The Nature Conservation Council has also called on AGL to put the "final nail in the coffin" of the Narrabri coal seam gas project.
"The science tells us that NSW and Australia have to end coal-fired power generation by 2030 to be on track to meet the Paris targets," Mr Gambian said.
The story The plan to install 500 megawatt battery at Liddell power station site first appeared on Newcastle Herald.