Australian infrastructure giant CIMIC Group’s UGL has been selected by world-leading renewable energy producer Neoen and battery storage solutions leader Tesla to construct the Muchea Battery project located northeast of Perth in Western Australia. The project features 164 megawatts of power capacity and 905 megawatt-hours of energy storage, making it Neoen’s first long-duration storage asset capable of providing six hours of continuous discharge.
This major project marks a critical step forward in Western Australia’s energy transition journey. The Muchea Battery project will play a vital role in supporting the state’s grid reliability and advancing renewable energy transformation. The project has secured support from the Australian Federal Government’s Capacity Investment Scheme, demonstrating national-level commitment to clean energy infrastructure development.
Under the contract, UGL will be responsible for site preparation work, including the installation and grid connection of 252 Tesla Megapack 2XL units, as well as designing and constructing a 132kV substation. The project also encompasses high-voltage infrastructure installation, control and switchroom facilities construction, earthworks, and foundation construction. Following equipment installation, UGL will provide testing and commissioning support services.
Juan Santamaría, ACS Group and HOCHTIEF Chief Executive Officer and CIMIC Group Executive Chairman, stated that this contract represents another milestone in the group’s commitment to enabling Australia’s energy transition. He noted: “CIMIC and ACS Group are strategically focused on building the infrastructure that underpins a low-carbon future – from renewable generation and storage to transmission and advanced technology. Our work with Neoen and Tesla reflects the trust placed in our capabilities and our shared ambition to accelerate clean energy outcomes.”
UGL Managing Director Doug Moss expressed his pleasure at adding this significant project to the company’s expanding portfolio of energy infrastructure across Australia. He revealed: “Muchea Battery will be our ninth battery installation project and our sixth one for Neoen and in partnership with Tesla. We’re supporting the energy transition through high-voltage transmission upgrades, regional electricity fortification, and the delivery of firming assets that strengthen the grid.”
Notably, the Muchea project follows immediately after UGL’s successful delivery of Neoen’s Collie Battery Stage 2. This 341-megawatt, 1,363-megawatt-hour project, also located in Western Australia, has commenced operations four months ahead of schedule. The Collie Battery system, delivered in two stages, boasts a total capacity of 560MW/2,240MWh, becoming Australia’s first battery system to offer more than 2 gigawatt-hours of energy storage. This successful case study fully demonstrates UGL’s exceptional capabilities in constructing large-scale storage projects.
UGL has delivered 19 major renewable generation and storage projects across Australia, including five flagship big batteries for Neoen: Victorian Big Battery, Western Downs Battery 1, Collie Battery 1 and 2, and the Western Downs Battery 2 which is currently under construction. This extensive project experience has laid a solid foundation for the smooth implementation of the Muchea Battery.
Neoen Australia CEO Jean-Christophe Cheylus welcomed the project launch. He stated: “The pace at which we have grown and delivered storage in Western Australia is a reflection of the Neoen team’s disciplined focus, the strength of our relationships with Tesla, UGL, Western Power and AEMO, and the trust that we have nurtured with our host landowners and the local community. I applaud the dedication of everyone who has brought Collie Battery online so quickly and look forward to Muchea Battery joining it to support the WA grid.”
Western Australia’s Coordinator of Energy, Jai Thomas, expressed his satisfaction at seeing the state government’s energy market arrangements delivering innovative projects like Neoen’s Muchea Battery. He emphasized: “The integration of new clean energy generation and battery storage projects is a crucial part of Western Australia’s energy transition and its journey to becoming a renewable energy powerhouse.”
Western Australia is at a critical juncture in its energy transition. One-third of the state’s households have already installed rooftop solar systems, and battery storage will play an increasingly important role in the future grid. Large-scale battery energy storage systems can not only store electricity during renewable energy generation peaks but also release power during peak demand periods, effectively balancing grid supply and demand while providing critical grid stability services.
In less than three years, Neoen’s storage capacity in Western Australia has surpassed 3 gigawatt-hours, representing over AUD 1 billion in investment in the state. This achievement demonstrates international capital’s confidence in Western Australia’s renewable energy market while creating substantial employment opportunities and economic benefits for the local community.
According to the plan, on-site construction for the Muchea Battery project will commence in October 2025 and is expected to finish in 2027. Once operational, the project will provide critical peak shaving and stability services to the Western Australian grid, particularly during evening peak demand periods, further enhancing the state’s power system’s ability to manage the intermittent nature of renewable energy.
The launch of this project not only showcases Australia’s determination and action in clean energy transition but also provides valuable practical experience for global energy transformation. With more similar projects coming online, Western Australia is steadily advancing toward its goal of becoming a renewable energy powerhouse, making positive contributions to addressing climate change and achieving carbon neutrality targets.
