Power company AGL will build South Australia's fifth grid-scale battery with the 250-megawatt system to come online at Torrens Island in Adelaide within two years.
Managing Director Brett Redman said the SA battery would be the first in a network being developed by the company as part of a plan to reach zero net emissions by 2050.
"Generating more power from wind than any other state, we know this battery will be instrumental in maintaining reliable and affordable supply for households and businesses in South Australia in the years ahead," he said.
AGL said battery technology was key to enhancing Australia's energy flexibility while leading the transition to renewables.
The Adelaide battery will be capable of running for up to one hour but is being designed to allow expansion to up to four hours.
The company is also developing a 200mw battery at its Loy Yang A power station in Victoria, a 150mw battery at its Liddell power station in NSW and a 50mw battery in Broken Hill.
SA Energy Minister Dan van Holst Pellekaan said the investment by AGL showed the confidence the private sector had in the state's energy sector.
"It's great to see AGL investing in new storage assets at the same time that the average household cost of electricity has come down by an average of $269 per year.
