Swedish renewables developer OX2 has officially begun construction on the Muswellbrook 100 MW / 200 MWh battery energy storage system (BESS) in the Hunter Valley, some 250 kilometres north-west of Sydney.
The site is a hybrid and includes a 135 MW solar farm that will connect to the Hunter-Central Coast Renewable Energy Zone (REZ).
Located at the site of a former coal mine that shut down in 2022, the project located near the coal mining town of Muswellbrook and called the Muswellbrook BESS, will supply enough electricity to power about 52,000 homes, helping strengthen grid reliability for the Hunter-Central Coast REZ.
The project is being delivered by OX2 and co-developed with Idemitsu Australia, the owner of the former coal mine and the site’s retaining owner. It reached financial close in May 2026 and is expected to support around 200 construction jobs.
“Today’s sod turning marks the beginning of construction on a project that demonstrates how Australia’s energy transformation can deliver lasting benefits for regional communities,” said OX2 Australia vice president Stephen Symons.
“By repurposing a former coal mine site into a renewables hub, we’re investing in infrastructure that will provide reliable energy, create local jobs, strengthen regional supply chains and support the Hunter’s future prosperity.”
Construction costs are estimated to be $302 million for the Muswellbrook solar farm and BESS. It is one of nine developments signed under long-term Amazon Australia power purchase agreements (PPAs), as part of the tech giant’s 430 MW, $2.8 billion renewable energy buy-up.
Through a Community Benefit Sharing Program agreed with Muswellbrook Shire Council, OX2 will contribute $115,000 each year to support local projects.
EnergyCo has commissioned Ausgrid to upgrade REZ‑designated distribution infrastructure to unlock 1 GW of network capacity by 2028, enabling OX2 to connect as soon as construction is complete.
“It’s pleasing to see that the additional network capacity we are building in the Hunter-Central Coast REZ is already unlocking new renewable energy and storage projects, delivering economic benefits to the Hunter region,” said EnergyCo chief executive Hannah McCaughey.
The Muswellbrook BESS is expected to be operational in 2028.
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