Council raises alarm, TagEnergy defends Naracoorte mega-battery proposal

A Portugal-based energy company’s plan to build a 600-megawatt-hour battery energy storage system (BESS) on 11 hectares of prime agricultural land west of Naracoorte has ignited fierce community debate, with questions mounting over land use, safety, transparency, and the long-term implications for the region.

TagEnergy’s proposal—still awaiting state government approval—has attracted strong interest from residents, landholders, and the Naracoorte Lucindale Council, which has expressed concern that the development would “take up prime agricultural land” in one of the region’s most productive zones.

The project would sit beside the existing Kincraig substation and a major power line—an advantage TagEnergy says is central to the site’s selection.

But for many locals, proximity to infrastructure does little to soften fears around land loss, environmental risk, and whether state-level approvals sideline local voices.

Why prime agricultural land?

When asked why agricultural land was chosen, TagEnergy Australia managing partner Andrew Riggs said the decision centred on infrastructure access rather than agricultural output.

“The site was chosen because of its proximity to the existing Kincraig substation which will minimise the need for new overhead transmission lines and broader landscape disturbance,” Mr Riggs said.

He argued the actual infrastructure footprint would be far smaller than the total property area.

“The final constructed battery would have a small physical footprint of approximately 5.5ha within the overall landholding, and livestock grazing will continue on the remainder of the Lot.” He further pointed to the land’s zoning under the Planning and Design Code, stating:

“The proposed Kincraig BESS would be located within the Rural Zone… where renewable energy facilities are an envisaged land use and the project is not expected to adversely impact adjacent agricultural land use.”

But whether any loss of productive farmland is acceptable—and whether approving one facility could pave the way for more industrial expansion over time, Mr Riggs said TagEnergy “has no control over the land surrounding the project site” and intends only for the battery “to coexist with surrounding agricultural uses.”

Safety, fire risks, and environmental modelling

While the council has pressed for clarity on fire safety, groundwater protection, and contamination management—particularly given high-profile battery failures elsewhere, Mr Riggs said the company had already lodged detailed assessments.

“The Bushfire Management Plan, Preliminary Hazards Assessment, Surface Water Assessment and other environmental assessments are included within the development application.”

He added that “a Construction and Environmental Management Plan (CEMP) would be developed” before any work begins, outlining requirements for contractors.

Mr Riggs sought to reassure locals, stating: “Fires in large scale battery projects are a rare occurrence.

Modern Lithium-Ion Phosphate battery design is much safer than older battery units and the batteries are built to rigorous Australian fire safety standards with inbuilt fire detection and suppression systems.”

Project’s long-term responsibility

Concerns about who pays—and who is accountable—should a failure occur remained central to community debate.

And responding to this, Mr Riggs said energy projects maintained public liability insurance to cover such events, and this would remain in place throughout the life of the project.

He said TagEnergy also committed to a “ring-fenced decommissioning fund” and a formal decommissioning and rehabilitation management plan before construction.

“Lease agreements legally oblige the project to make auditable financial provisions for decommissioning,” Mr Riggs said, adding the requirements would apply to any future owner under “successors and assigns” clauses.

Community consultation process

TagEnergy maintains it has already conducted local consultation.

“Community information sessions were held in Naracoorte Town Hall on the 26th and 27th of May 2025,” Mr Riggs said.

He said the events were “widely advertised” and that “the majority of attendees expressed positive sentiment about renewable energy and battery storage.”

Residents who feel blindsided by the scale of the project argued that two information sessions—held months before state assessment formally opened—were insufficient.

Despite growing calls for a public town-hall forum, Mr Riggs would not commit to one ahead of approval, saying only that “further community consultation will be undertaken should approval be granted.”

Project’s economical value to the region

With operational roles expected to be minimal, locals have questioned whether the project delivers real, ongoing economic value to the region.

Mr Riggs acknowledged that “ongoing operational employment for a battery project is modest” but emphasised indirect benefits during construction, including support for local accommodation, restaurants and shops.

He said the company would “prioritise local contractors and suppliers” and that TagEnergy “provides a community benefit fund for all of our projects.”

“We are exploring options for the benefits package which could support initiatives in areas such as education, community facilities or environmental projects in the district,” he said.

Submissions being reviewed, says govt

A Department for Energy and Mining spokesperson confirmed the project had entered a 30-day statutory consultation period, with submissions now being reviewed.

“Consultation on the Environmental Impact Report (EIR) and Statement of Environmental Objectives (SEO) for the Kincraig Battery Energy Storage System (BESS) was held… from 20 October to 1 December 2025,” the spokesperson said.

“DEM received comments from a range of stakeholders, including the Naracoorte and Lucindale Council. These comments, where relevant, will inform updates to the EIR and SEO… if the EIR and SEO are approved.”

Council had formally lodged its submission, signalling strong concern about losing productive farmland and the level of local oversight.

TagEnergy defends assessment process

The company has defended the state-led assessment structure.

“State level assessment… provides a consistent framework for complex energy projects while still requiring consultation with councils and the community,” Mr Riggs said, adding the company “would comply with all planning conditions” imposed by the state.

This article appeared in the The Naracoorte News, 10 December 2025.