Tesla Megapack Project Breaks Ground in South Australia

A major new Tesla Megapack installation is headed to rural South Australia, with construction set to begin shortly on a 200MW/800MWh battery energy storage system near Koolunga — about 180km north of Adelaide. Developer Equis Development is backing the $225 million project, which is scheduled to come online in September 2027.

Sawyer Merritt tweet about Tesla Megapack project in South Australia
Source: @SawyerMerritt — May 5, 2026

What's Being Built

The Koolunga Battery Energy Storage System will consist of 444 individual Tesla Megapack units, making it one of the more substantial grid-scale deployments in Australia's recent history. The site sits approximately 6km south-east of Koolunga and will connect to South Australia's electricity grid via a 1.2km high-voltage cable linking directly to the 275kV Brinkworth Substation.

Australian infrastructure contractor GenusPlus Group has been awarded the Engineering, Procurement, Construction, and Commissioning (EPC) contract, valued at approximately AUD $110 million (around US$78.5 million). All planning and environmental approvals, along with community impact assessments, have already been completed — clearing the path for construction to begin without further regulatory hurdles.

The Bigger Picture

The project was selected under Tender 3 of the Australian federal government's Capacity Investment Scheme (CIS), announced in September 2025. The CIS is designed to accelerate investment in renewable energy and storage capacity across Australia, and the Koolunga BESS is one of its more significant awarded projects to date.

South Australia has been an early and aggressive adopter of grid-scale battery storage — the state became globally recognized after the original Hornsdale Power Reserve (also in South Australia) demonstrated that large-scale batteries could stabilize grid frequency faster and more cost-effectively than conventional peaker plants. The Koolunga project continues that trajectory, adding 800MWh of dispatchable storage to a grid increasingly dominated by wind and solar generation.

According to project filings, the development is expected to create up to 115 jobs during the construction phase and 5 permanent operational roles once commissioned.

Megapack's Growing Footprint

Tesla's Energy division has been scaling Megapack deployments rapidly across multiple continents, and Australia has emerged as one of its most active markets. The Koolunga project's 800MWh capacity is a meaningful addition — for context, Tesla's Megafactory in Lathrop, California, was designed to produce 40GWh of Megapack capacity annually when at full output, so projects of this scale represent exactly the kind of sustained commercial demand that justifies that manufacturing investment.

With commissioning targeted for September 2027 and all approvals already in hand, the Koolunga BESS looks well-positioned to hit its timeline. Whether Equis Development pursues additional Australian projects on the back of this one will be worth watching — the CIS tender pipeline still has capacity, and the appetite for grid storage in the region shows no sign of slowing.


Sarah Chen
Sarah Chen
Senior Writer — Energy & SpaceX

Sarah focuses on Tesla Energy, SpaceX missions, and the broader Musk AI portfolio. Former data analyst in clean energy. Based in San Francisco.

Sources verified at publish time. Spotted an inaccuracy? Email editorial@basenor.com.

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