Origin Energy Limited has approved the construction of a large-scale battery at the Eraring Power Station.
The energy giant has committed to an investment of $600 million for the project.
The 460 MW Battery will have a dispatch time of two hours, and is set to come online in late 2025.
There's also an option to increase the battery to 700 MW and a four hour dispatch in the future.
The project received initial planning approval from the NSW Department of Planning and Environment in May 2022.
Construction work is set to begin within a matter of weeks.