Atmos Renewables picks Valo for Queensland battery

Atmos Renewables has selected Valo to deliver the 400 MW / 1,600 MWh Teebar Battery Energy Storage System in Queensland, one of the largest battery storage projects committed for construction in the state.

The Teebar project will be built in the Fraser Coast region beside the Teebar Creek Substation. The battery system has secured Generator Performance Standards approval for grid-forming operation in the National Electricity Market, a capability attracting increasing attention as Australia adds more renewable generation to the grid.

The award adds to early momentum for Valo, a battery storage integrator created through a joint venture between Wärtsilä and RCT Solutions. The Teebar contract lifts its Australian energy storage portfolio to more than 7.6 GWh.

Large battery projects have become central to Australia's electricity transition as coal plants retire and solar and wind account for a larger share of supply. Developers and grid operators are turning to storage to manage fluctuations in output, maintain system strength, and help balance demand across the National Electricity Market.

Teebar is also tied to the federal government's Capacity Investment Scheme, which is intended to support investment in dispatchable clean energy infrastructure. Valo will work with Atmos Renewables on performance, reliability, and social licence requirements linked to the scheme.

Market backdrop

Queensland has emerged as a key market for utility-scale batteries as the state expands renewable generation and seeks to strengthen its transmission network. Projects of several hundred megawatts are becoming more common, reflecting rising electricity demand and a broader policy push to improve reliability as the energy mix changes.

Grid-forming battery systems are especially significant because they can help stabilise networks with high levels of inverter-based generation such as wind and solar. Unlike conventional assets that rely on the grid's existing voltage and frequency signals, grid-forming assets can contribute to system strength and support stable operation under changing conditions.

This makes technical execution and grid connection central to large storage projects in Australia, where approval processes and testing requirements can be extensive. Developers are increasingly focused on suppliers with experience in connection studies, commissioning, and hold point testing in the National Electricity Market.

The Teebar project will use Valo's GridSolve Quantum2 energy storage system and GEMS software. It will also be backed by a long-term service agreement covering performance and availability guarantees, maintenance, remote operational support, software updates, and performance monitoring.

Commercial operation is expected in late 2028. That timeline places the battery among a wave of large storage assets scheduled to come online over the next several years as Australia seeks to firm renewable generation and reduce pressure on ageing thermal assets.

For Atmos Renewables, Teebar forms part of a broader build-out of renewable infrastructure in Australia. The company has positioned the project as both a grid support asset and a long-term development for the local area.

"Atmos Renewables is developing a portfolio of strategically located renewable energy assets to support Australia's energy transition, and we are proud to support that vision with proven energy storage technology and delivery expertise," said Suraj Narayan, Managing Director, Australia, Valo.

"Australia continues to be one of the world's most advanced energy storage markets, and Teebar BESS represents another important step in supporting the country's transition to a cleaner, more resilient energy system. Our extensive experience delivering and commissioning grid-scale battery projects across the National Electricity Market, combined with a strong track record through grid connection and hold point testing, gives developers confidence that projects can be delivered safely, reliably, and on schedule," Narayan said.

Atmos Renewables Chief Executive Officer Nigel Baker said the battery would play a broader role in the state's electricity system and in the host community.

"Teebar BESS is an important project for Atmos Renewables and will play a significant role in supporting Queensland's growing renewable energy system, whilst providing long-term benefits for the local community," said Nigel Baker, Chief Executive Officer, Atmos Renewables.

"As we move into construction, we're pleased to be partnering with Valo, whose experience in delivering large-scale battery storage projects will help ensure Teebar is built to a high standard and positioned as a quality long-term project for the benefit of all stakeholders," Baker said.