This artist’s impression of a battery project in SA indicates what a BESS project looks like. Image: AGL.
A proposal to construct a 350 MW Battery Energy Storage System (BESS) in Kangaroo Valley has ignited debate over the local costs of Australia’s rapid transition to renewable energy.
AGL’s pitch to install the grid-scale infrastructure on a 4.5-hectare footprint off Bendeela Road has split members of the community.
Proponents and the host landowners argue the project is a geographically vital contribution to preventing statewide blackouts as coal plants retire.
But neighbouring residents fear the development poses catastrophic bushfire risks and amounts to “environmental vandalism” orchestrated without genuine community consultation.
Because the multi-million dollar development is classified as a State Significant Development (SSD), the final decision will bypass local government and rest entirely with the NSW Department of Planning, Housing and Infrastructure (DPHI) or the Independent Planning Commission.
This jurisdictional reality has left residents feeling outmuscled by corporate interests, even as the state races against a 2035 deadline to secure firming power.
An existing unused 450 MW capacity at the adjacent Transgrid switching station drove AGL’s location choice, according to landowner Mark McLennan.
“That switching station just happens to be there,” he said. “They were planning on doubling the capacity of the hydropower plant. That met with some community resistance and some budget constraints … That capacity is still there to tap into.”
For Mark, who employs about 17 people between his landscaping business and egg farm, leasing 4.5 hectares of cleared land is also a financial lifeline.
“It is very hard to run a profitable farm on the South Coast,” he said.
“Our egg production is already quite an ethical business — we chose it that way, and it is incredibly expensive to run a business like that. It’s a bit of a success story, but certainly, being able to lease out part of the farm to AGL is a commercial benefit.
“To be partnered with something that is a really big part of the energy grid while still being able to run our farm is pretty exciting.”
Among those strongly opposed are neighbouring property owners Sarah Cassimaty and Kate Rutherford, who have started a petition against the proposal that has more than 800 signatures.
“We know we will be called NIMBY over protesting this, but it’s not the case,” Sarah said. “This is SIMBY — safety in our backyards we care about, and protecting our beautiful landscape from poorly thought-out and inappropriate infrastructure in sensitive locations.”
Kate, who uses solar panels, a residential battery and a hybrid electric vehicle, said detractors were pro-renewables but challenged the location, where residents still remember the devastation of the 2020 Currowan bushfires.
“What happens when the next bushfire in Kangaroo Valley potentially triggers a thermal runaway event from the BESS?” Kate said. “What happens to our air, soil, wildlife and critically, our water supply? What happens if the BESS cooling units fail on a 45-degree day and the BESS triggers a bushfire with power and communications cut?”
Sarah said residents also worried about property value and insurability, but environmental risks remained the primary concern.
“I will never be able to enjoy living peacefully in my home again if the surrounding area is turned into industrial infrastructure, nor will I or my neighbours be able to sell their properties or insure them in future,” she said.
“They may not care about the effect on our lives and property, but I hope they care about fire and the environment … This is environmental vandalism.”
AGL is preparing an environmental impact statement (EIS) covering fire suppression systems, noise and visual impacts, including screening for the nearest home 500 m away.
The EIS will be submitted to DPHI in late 2026 for public exhibition via the NSW Planning Portal and formal assessment. If the project is approved, AGL expects to reach a final investment decision in 2028.
AGL Senior Manager of Stakeholder Engagement Rob Cooper said the company was “committed to ongoing genuine consultation with the local community about the project which, if approved and developed, is intended to improve the reliability and resilience of the electricity grid”.
AGL stated it had consulted with governments, Shoalhaven City Council, traditional custodians, and locals through door knocking and drop-in sessions. However, detractors have called the approach disingenuous.
“I am surprised that ‘door knocking’ is still considered a worthy consultation strategy. To be an effective consultation strategy, it would mean that all residents were at home, at all times, on the whim of an organisation such as AGL ‘popping in’,” Kate said.
For more information, visit AGL’s Kangaroo Valley Battery website. Residents can also hear early findings from the EIS studies, ask the project team questions or voice concerns. Community information sessions will be held at the Kangaroo Valley Community Hall on Friday 29 May from 3 to 5 pm and Saturday 30 May from 9 to 11 am.
