A proposed battery energy storage system by Potentia Energy, designed to enhance the reliability of the energy grid, is facing backlash from local landholders in Mount Gambier, South Australia. The project, which is set to have a capacity of 500 megawatt-hours, is strategically positioned about a kilometer away from an electrical substation. However, landowners argue that the site, located on the western fringe of Mount Gambier, is critical for future housing developments and should not be repurposed for energy storage.

The landholders have voiced their concerns about the potential impacts on housing growth due to the battery project, fearing that it may restrict further development in a region that is already experiencing housing demand. The argument stems from a belief that the land set aside for the battery project could be better utilized for residential purposes, addressing the increasing need for new homes. Potentia Energy asserts that the project's environmental and community impacts are minimal and emphasizes that the battery system plays a crucial role in ensuring energy reliability for the local grid.

As the debate continues, local residents and stakeholders have been granted a deadline until March 10, 2026, to submit their feedback on the project. This period for public submissions could influence the project's approval and its alignment with community needs, especially regarding housing availability. The situation highlights the ongoing challenges of balancing renewable energy initiatives with local land-use priorities, reflecting broader trends in sustainable development.