Approval granted for the construction of a 1.2 GWh energy storage system in Australia.
The UK-based energy storage developer Eku Energy has received formal approval from the government of Victoria to build the Tramway Road Battery Energy Storage System (BESS) with a capacity of 300 MW and 1.2 GWh. The AUD 400 million (USD 262 million) project will be located in the Gippsland region in southeastern Victoria, near Hazelwood North in the Latrobe Valley, a historic center of Australia’s coal industry.
Tramway Road BESS – a key element of regional energy infrastructure
The Tramway Road BESS project will connect to the Hazelwood Terminal Station, potentially adjacent to the planned Marinus Link converter station — a new electricity connection between Victoria and Tasmania. This connection is strategically important for integrating renewable energy sources in southeastern Australia.
The administrative approval was accelerated under the Victorian Development Facilitation Program, which from 2024 also covers renewable energy projects. Since the program’s expansion, investments totaling over AUD 7.8 billion have been approved across 22 projects, which will collectively power more than 700,000 homes and provide energy storage equivalent to the evening demand of 1.8 million households.
The 1.2 GWh storage facility will be able to supply around 104,000 homes during peak demand. During construction, the project will create 150 jobs, with five permanent positions remaining after the facility becomes operational in 2028 (construction is planned to start at the end of 2026).
According to Rachel Rundle, Policy Director at Eku Energy, obtaining planning approval is a “key milestone toward delivering infrastructure that supports Gippsland and the entire state of Victoria in the transition to clean energy.” The company is conducting extensive consultations with local communities, Indigenous groups, and local businesses to ensure lasting economic and social benefits from the project.
Eku Energy – consistent expansion and portfolio diversification
The Tramway Road BESS is another step in Eku Energy’s strategy. The company is jointly owned by Macquarie Asset Management and the British Columbia Investment Management Corporation.
Eku Energy already operates two energy storage facilities:
- Hazelwood BESS (150 MW / 150 MWh) – also in the Latrobe Valley, on the site of the former Hazelwood coal plant,
- Rangebank BESS (200 MW / 400 MWh) – in Cranbourne West, about 50 km southeast of Melbourne.
Under construction is Williamsdale BESS (250 MW / 500 MWh), along with six additional projects including Tramway Road, three in New South Wales, and two in Queensland. Most are designed in a 300 MW / 1,200 MWh configuration, except Griffith BESS in Yoogali (100 MW / 800 MWh).
With this portfolio, Eku Energy is becoming one of the most active independent BESS developers in the Asia-Pacific region.
Gippsland as a symbol of energy transition
It is no coincidence that Tramway Road BESS is being built in the Latrobe Valley, a region long dependent on brown coal, now transforming into a hub for modern, low-emission energy.
New investments — such as Marinus Link, wind and solar projects, and BESS systems — align with Victoria’s long-term strategy to reach 95% renewable energy by 2035 and net-zero emissions by 2045.
Tramway Road BESS will act as a network-stabilizing buffer. On one hand, it provides peak power reserves; on the other, it supports integration of variable renewable energy sources and improves energy security in southeastern Australia.