General News
28 January, 2026
Backup power for township
A MAJOR renewable energy company is planning to build the region’s biggest battery storage system.
To be built in Tully, the main purpose of RWE Renewables Australia’s lithium-ion Battery Energy Storage System (BESS) project is to strengthen energy security and reliability across Far North Queensland, by storing surplus renewable energy and discharging it during peak demand.
By locating 200 megawatts and more storage at Tully – a key regional power node – the project aims to stabilise the local grid, support the transition to renewables and provide backup power for about 15,000 homes.
“The Tully BESS will improve energy reliability particularly during extreme weather or peak demand periods,” the company’s communications and stakeholder engagement manager Tanya Waterson said.
“It is one of the few BESS facilities across the National Energy Market to be located at both a transmission and distribution interface,” she said.
Ms Waterson said the Tully BESS would be a key piece of infrastructure in supporting energy storage.
“The Tully BESS will be a key piece of infrastructure in supporting energy storage development in regional Australia and will help make supply more secure for households and businesses.”
The facility will be completely standalone on about 9ha at Sandy Creek Road, next to Powerlink’s Tully substation which supplies power to most of north and Far North Queensland.
The new BESS will support about 60 full-time construction jobs and plans to employ three permanent staff once complete.
The facility will include up to 188 battery units and a “sound wall” on one side if required.
Due to the Queensland Government introducing a new “social impact” planning regime in December, the project is now being assessed by the State Assessment and Referral Agency (SARA) rather than Cassowary Coast Regional Council.
The changes also mean that because the Tully BESS is over 50 megawatts, RWE must now complete a formal Social Impact Assessment (SIA) and negotiate a Community Benefit Agreement (CBA) with Cassowary Coast Regional Council before the new application can proceed.
Despite having to submit a new development application in line with the state planning changes, RWE is targeting 2027 for construction and late 2028 for initial operations.
RWE says it prioritises “engaging local suppliers and workforce when possible.”
Recently, suppliers from Cairns were engaged to conduct geotechnical site works and drone photography. The company also commissioned a Townsville supplier to conduct an economic impact assessment for the Tully BESS.
