Work has begun on the construction of the Waratah Super Battery on the site of the former Munmorah Power Station.
The 850 megawatt (1680 megawatts-hours) battery is designed to act as a 'shock absorber' in the event of power surges caused by bushfires and lightning strikes.
Akaysha Energy is responsible for the construction and operation of the battery. It is due to be completed in 2025, before the earliest possible closure of the Eraring Power Station in August 2025.
The project received planning approval earlier this year.
"Innovative projects like this one are critical to supporting our state's transition to net zero as soon as possible," NSW Energy Minister Penny Sharpe said.
"The Waratah Super Battery is an excellent example of how our state can deliver clean, efficient and innovative infrastructure that benefits homes and businesses across NSW."
"This is a world leading project being delivered here in NSW."
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