What happens to a power system when coal retires but demand keeps rising? In Australia, the answer is increasingly found in large-scale battery energy storage. Flow Power’s latest financing milestone highlights how capital, technology, and grid infrastructure are converging to reshape the country’s energy landscape.

Flow Power has secured a financing package from Westpac and SMBC to fund the construction of the Bennetts Creek Battery Energy Storage System in Victoria. The transaction, supported by OPTrust as Flow Power’s majority shareholder, underlines growing lender confidence in utility-scale storage as a cornerstone of Australia’s clean energy transition.

The Bennetts Creek project is located near Hazelwood North in Victoria’s Latrobe Valley, close to the site of the decommissioned Hazelwood coal-fired power station. This positioning is strategically significant, repurposing existing grid infrastructure in a region historically central to power generation.

The stand-alone battery will deliver 100 MW of power with 223 MWh of storage capacity, making it one of Flow Power’s most ambitious developments to date. It is also the company’s first large-scale stand-alone battery system and its 11th project overall, marking a clear evolution from retail energy offerings into grid-scale infrastructure.

The project will utilise Wärtsilä’s Quantum energy storage system, supported by the company’s GEMS digital controls and optimisation software, which will act as the power plant controller. This technology stack enhances reliability, response speed, and operational efficiency, all critical factors for lenders assessing long-term performance.

Zenviron has been appointed to manage balance-of-plant design, construction, installation, and commissioning, while Everoze, Aurecon, and Aurora are providing technical advisory services. Together, this experienced delivery team reduces execution risk and supports the project’s expected commercial operation date in 2028.

Financing proceeds will also fund a new 66 kV transmission line connecting the battery to the Morwell terminal substation. This grid connection is essential for enabling the battery to provide peak support, demand management, and system stability services.

Once operational, Bennetts Creek will support residential and commercial renewable offerings, including premium feed-in tariffs, helping smooth supply variability as more wind and solar enter the grid. It also demonstrates how battery storage can replace some of the system services once provided by coal-fired plants.

As Australia accelerates its shift toward flexible, low-carbon power systems, projects like Bennetts Creek set a powerful precedent.

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