The Hon. Steve Edgington, Minister for Essential Services, Media Release, 20 April 2026
The Finocchiaro CLP Government is delivering stronger, more reliable power for Alice Springs and Katherine, with an $82.1 million investment in battery energy storage.
Territory Generation has awarded Pacific Energy a contract to deliver the next phase of the battery energy storage system (BESS) program.
The first large-scale battery project, worth $46.5 million, will be delivered at Territory Generation’s Owen Springs Power Station to support the Alice Springs power system.
The second battery project, worth $35.6 million, will be at Katherine Power Station to support the Darwin-Katherine interconnected power system.
Minister for Essential Services Steve Edgington said the batteries would strengthen energy security, stabilise the grid, and back in more solar.
“As part of our year of growth, certainty and security, the CLP Government is delivering certainty and security for Territorians in their homes, as well as for business and industry, in our electricity system.
“This is about building a modern energy system for the future—one that is reliable, smarter, and more secure. Battery storage is a key piece of that puzzle, helping us integrate more solar while keeping power affordable and reliable.”
“Territorians well remember how the previous Labor Government pushed ahead with several solar farms but failed to make sure the grid was stable enough and they were not supplying to the grid under Labor. The CLP is fixing another Labor mess to make the grid stable, and batteries are a part of that.
“These large-scale batteries are not just about keeping the lights on—it’s about powering our economy. By improving energy security, we’re creating the conditions for new industries and local jobs as part of our plan to rebuild the economy. These large-scale batteries help provide the energy stability investors need to drive new infrastructure projects, and create jobs across the Territory,” Mr Edgington said.
Territory Generation CEO Gerhard Laubscher said, “This essential system services battery program is a critical investment in the future resilience and reliability of the Territory’s power systems, delivering whole?of?system benefits by strengthening system stability and improving grid response to sudden changes and unplanned events.
“Pacific Energy brings proven experience and an established Northern Territory presence, and we look forward to working with them to deliver the next phase of Territory Generation’s battery energy storage program.”
Pacific Energy CEO Mike Hall said, “We value the trust the Northern Territory Government has placed in us. We’re proud to be contributing to infrastructure that will underpin a more secure and sustainable energy future.
“This project draws on our deep technical experience, our Australian-based engineering and manufacturing capability, and our focus on long term asset performance.”
The new 12 MW, four-hour Owen Springs battery will provide energy-shifting capability to support system stability and capacity during minimum and peak demand periods. Construction sites have been defined, and site services are being provisioned ahead of civil works commencing in the coming months.
Civil works for the Owen Springs battery have been awarded to local Alice Springs company Asplum & Civil, with minor electrical and ancillary works also supported by local Alice Springs providers.
Design work will soon be underway for the new 21.5 MW, one-hour Katherine battery that will build on the strong performance of Territory Generation’s Darwin–Katherine BESS 1, which has exceeded expectations since becoming fully operational at Channel Island Power Station.
Pacific Energy has extensive experience delivering virtual synchronous machine (VSM)-configured batteries in remote and challenging locations around Australia
Starting in 2028, the batteries will come online in phases as they’re completed.
