Contact Energy will build a grid-scale 100-megawatt battery at Glenbrook with Tesla for up to $163 million.
According to the business, 44,000 houses could have their peak electricity needs met for over two hours throughout the winter thanks to the battery, which would also increase Contact’s renewable-energy flexibility.
Compared to other grid-scale battery projects, this one will be located closer to the Auckland load, right next to the grid connection point used by NZ Steel and Transpower.
The acquisition of Tesla’s Megapack 2 XL battery energy storage system and commissioning and long-term maintenance services followed a competitive tender.
The deal with Tesla includes an option to increase the battery capacity at this location to 130MW.
Construction will begin promptly at the Glenbrook location, and Contact will oversee the entire project.
Contact said that it had received consent to create another 100MW grid-scale battery in Stratford, Taranaki, and was exploring further battery investment options.
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Glenbrook batteries should go online in the first quarter of 2026.
Contact and the market will benefit greatly from this renewable power source when it is operational because it operates across physical, reserve, and frequency-keeping markets, according to the business.
Contact’s action comes after NZ Aluminium Smelters, the largest power user in the country, made a historic decision on May 31 to stay in New Zealand for 20 years after threatening to close the factory.
According to Contact, their plans to invest in new intermittent renewable production across New Zealand are moving forward now that the New Zealand Aluminium Smelters have committed their long-term presence, boosting market certainty.
As Contact headed toward a low-carbon future, the battery would help with daily and weekly wind and solar and reduce gas speakers.
FAQs
They are collaborating on a 100-megawatt (MW) grid-scale battery storage facility in Glenbrook, New Zealand.
Construction is expected to start right away with an aim for completion by early 2026.
