Sydney, NSW – Spark Renewables’ ambitious AUD 1.35 billion Dinawan Solar Farm and co-located battery energy storage system (BESS) in south-west New South Wales has received federal environmental approval this week, marking a critical milestone for one of Australia’s largest hybrid renewable projects. The federal green light under the Environment Protection and Biodiversity Conservation (EPBC) Act, issued on July 7, 2026, moves the 800 MW solar facility and its substantial 300 MW/1,200 MWh battery closer to construction, bolstering NSW’s energy security and accelerating the transition from fossil fuels.
The Dinawan project, strategically located in the South-West Renewable Energy Zone (REZ) between Coleambally and Jerilderie, is poised to become a significant contributor to the National Electricity Market (NEM). Its primary purpose is to store renewable energy generated during periods of high solar output and dispatch it during peak demand, thereby reducing reliance on traditional synchronous generators and enhancing grid stability.
“More than 3.8GWh of combined energy storage capacity has either cleared or entered federal environmental assessment under Australia’s Environment Protection and Biodiversity Conservation (EPBC) Act, with one project winning approval and two opening for public comment.”
This federal approval follows the New South Wales Independent Planning Commission (IPC) clearing the project in April 2026, despite more than 50 public objections lodged during its assessment period. The project was among those previously awarded the right to connect to the South West REZ, incorporating a 1,007 MW capacity across solar, wind, and battery storage.
Spark Renewables, a subsidiary of Malaysian electricity giant Tenaga Nasional Bhd (TNB), confirmed that the Dinawan project comprises an 800 MW solar installation with approximately 1.5 million solar panels, alongside the 300 MW/1,200 MWh battery. A separate 707 MW wind component is also included in the broader facility.
Once operational, the hybrid project is expected to generate clean energy sufficient to power the equivalent of about 142,000 homes annually. The developer is targeting a final investment decision in 2027, with construction anticipated to commence later that year. The construction phase alone is projected to create approximately 400 jobs.
The Growing Role of Grid-Scale Batteries
The Dinawan project’s progression underscores the increasing importance of large-scale battery energy storage systems (BESS) in Australia’s energy landscape. These facilities are crucial for integrating intermittent renewable energy sources like solar and wind into the grid, ensuring a reliable and stable electricity supply. The Australian Energy Market Operator (AEMO) has consistently highlighted the vital role of storage in managing grid fluctuations and lowering wholesale electricity prices.
Recent data from NEMPulse indicates that Australia’s 55 grid-scale BESS generated a combined AUD 17.98 million in estimated gross energy and frequency control ancillary services (FCAS) market revenue during June 2026. This performance highlights the economic viability and operational benefits that large batteries provide to the NEM.
“The June figures cover a fleet that is growing rapidly in installed capacity. AEMO’s 2026 Integrated System Plan, published on 25 June, confirmed that 45GW of grid-scale battery storage projects were progressing through the NEM connections process at the start of 2026, already exceeding the ISP’s own 35GW storage target for 2050.”
Key Grid-Scale Battery Projects in Progress (Recent Developments)
| Project Name | Location | Capacity (MW/MWh) | Status (Recent) | Estimated Cost (AUD) |
|---|---|---|---|---|
| Dinawan Solar Farm & BESS | South-west NSW | 800MW Solar / 300MW/1,200MWh BESS | Federal environmental approval (July 7, 2026) | 1.35 Billion |
| Orana BESS | Central-West Orana REZ, NSW | 415MW/1,660MWh BESS | Commenced commercial operations (June 26, reported July 7, 2026) | Not specified |
| Corop Solar-plus-Storage | North-central Victoria | 230MWac Solar / Up to 290MW/1,160MWh BESS | Acquired by OX2 (July 7, 2026) | Not specified |
| Winton North Solar-plus-Storage | Northeast Victoria | 130MW Solar / 100MW/220MWh BESS | Amazon signs additional PPA for battery storage (July 6, 2026) | Not specified |
These projects, alongside others like the Queensland Government’s new AUD 200 million North West Energy Fund now accepting proposals for localised energy solutions, demonstrate a concerted effort across Australia to build out significant battery infrastructure.
Households are also increasingly adopting battery storage to complement their rooftop solar systems. The federal Cheaper Home Batteries Program continues to offer upfront discounts, making home battery installations more accessible. For homeowners considering a battery, understanding how these large-scale grid developments impact overall energy stability and pricing is crucial. More insights into optimising home energy use can be found in our guide: Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30%.
The continued expansion of both grid-scale and residential battery storage is fundamental to achieving Australia’s renewable energy targets and maintaining a resilient, cost-effective electricity supply. As more coal-fired power stations retire, the role of batteries will only grow, providing essential firming capacity and helping to manage the grid’s transition to higher levels of renewable penetration.