Massive Tesla Energy Storage Systems to Power $145 Million Battery Venture in Australia
In the heart of Western Australia's Wheatbelt region, a significant milestone in the country's renewable energy journey is underway. The Merredin Battery Energy Storage System (BESS), a 100MW / 400MWh grid-scale energy storage project, is being developed in partnership with Nomad Energy and powered by Tesla's innovative Megapack batteries.
This project marks Atmos' first-ever battery facility and their 18th operational asset overall. The Merredin BESS is not the first Tesla project in Western Australia; the Collie Battery Stage 1 project, activated in October 2024, was an earlier example.
Atmos and Nomad aim to develop a pipeline of renewable energy projects totaling over 1 GW in Western Australia by 2030. The Merredin BESS, set to begin construction this year and operational by early 2027, is a significant advancement in large-scale energy storage deployment for the region.
Tesla's Megapack batteries are increasingly being tapped for some of the world's most ambitious battery projects. In addition to the Merredin BESS, Tesla is also powering China's largest grid-scale battery plant, further cementing the company's growing dominance in global energy storage.
The Merredin BESS is strategically situated along the 220 kV Muja-Kalgoorlie transmission line and connects to the South West Interconnected System (SWIS) through the nearby Merredin Terminal Station. This location ensures a seamless integration with the existing power grid.
The benefits for the Western Australia region are manifold. The Merredin BESS will help stabilise the grid by smoothing the variability of renewable energy sources, providing grid-forming capabilities to maintain power quality and support local grid stability.
By storing excess renewable energy when generation exceeds demand and discharging it during peak demand periods, the BESS facilitates greater penetration of solar and wind energy in the region. The system enhances energy security by providing rapid response services such as frequency regulation or emergency backup, helping to reduce outages or grid disruptions.
The operational BESS is expected to support Western Australia’s transition to a cleaner energy mix, potentially lowering energy costs and supporting local economic growth through investment and improved energy infrastructure. The project is estimated to generate approximately 70 construction jobs.
Atmos emphasizes community involvement as a top priority for its projects, stating: "Atmos is dedicated to partnering with local communities and suppliers to ensure the long-term success and positive legacy for all our projects."
The total cost of the Merredin BESS project is $145 million USD ($220 million AUD). In Q2 2025, Tesla deployed 9.6 GWh worth of energy storage products globally, setting a new record for the company's second quarter performance in this segment.
As the world continues to transition towards renewable energy sources, projects like the Merredin BESS are crucial in ensuring a reliable, clean energy future for Western Australians.
The Merredin Battery Energy Storage System (BESS), financed in partnership with Atmos and Nomad, is a significant step in the renewable energy industry, using Tesla's Megapack technology to facilitate greater penetration of solar and wind energy in Western Australia. This 100MW / 400MWh project aims to support locals by stabilizing the grid, enhancing energy security, and boosting the region's economy through job creation and investment in renewable energy technology.
