Naturgy Launches $500 Million Solar-Battery Hybrid Project in Australia

Spanish energy powerhouse Naturgy has greenlit its second solar-battery hybrid project in Australia, following the successful launch of the nation’s inaugural project just over a year ago. The new venture, called the Fraser Coast project, involves a substantial investment of $500 million and will consist of a 290 megawatt (MW) solar farm paired with a 180 MW, two-hour battery. Located approximately 50km south-west of Maryborough, construction is now underway, with completion anticipated in 2028.

This development has secured a 10-year power purchase agreement with a yet-to-be-identified buyer, though Telstra has been a significant player in some of Naturgy’s other prominent projects across Australia.

First of Its Kind

Last year, Naturgy successfully launched the first ever solar-battery hybrid project in Cunderdin, Western Australia, featuring a 128 MW solar farm combined with a 55 MW, 220 megawatt-hour (MWh) battery. The appeal of solar-battery hybrids is growing, largely due to their ability to share the same connection, enabling solar energy to be stored and delivered during peak demand periods. They are also emerging as a more competitive and simpler alternative to larger wind initiatives.

Utilising Legacy Regulations

The Fraser Coast initiative is rooted in Queensland’s previous planning regulations, having received development approval in April 2024, prior to the updated assessment guidelines for renewable energy projects. Federal EPBC approval was granted in November of the previous year.

This project adds to a series of solar-battery hybrid developments in Queensland, which includes the Smoky Creek and Guthrie’s Gap projects, collectively representing 720 MWp of solar capacity and 600 MW / 2,400 MWh of battery storage.

Expanding Naturgy’s Portfolio

Upon completion, the Fraser Coast project will stand as Naturgy’s largest undertaking in Australia, where it operates through its subsidiary GPG. Naturgy holds a 75% majority share in GPG, with the remainder owned by the Kuwait Investment Authority (KIA).

The company is also known for its legacy wind projects in Australia, including Crookwell 2 and 3 in New South Wales and Berrybank 1 and 2 in Victoria. Overall, Naturgy boasts a portfolio that includes 2.5 gigawatts (GW) of wind and solar assets, comprising both operational facilities and projects still in the pipeline, as well as another 1.1 GW, or 1.2 gigawatt-hours (GWh), in battery projects, according to the project monitoring service Renewmap.

Just last month, Naturgy commissioned the 96 MW Bundaberg solar farm, located north of the Fraser Coast project, alongside the 260 MW Glenellen solar project in New South Wales. Both of these facilities have secured offtake agreements with Telstra, which is purchasing the entire output of the Bundaberg project and half of Glenellen’s generation. However, it’s important to note that these new solar installations do not include battery systems.