The plan from French-based Neoen to build a 300 megawatt battery next to Stockdill Drive near Ginninderry was referred to the federal environment department due to the project being likely to impact on endangered woodland.

In a decision on the battery plan's referral, the department said the project would need further assessment approval under the federal Environment Protection and Biodiversity Act to go ahead.

"The project will be assessed under the assessment bilateral agreement with the ACT government," the referral notice said.

A bilateral environmental impact statement will be created by the federal and ACT government as part of the assessment measures.

If the statement is then completed, a development application would be able to be lodged with the ACT government.

The proposed battery project has been earmarked for five hectares of the critically endangered box-gum grassy woodlands habitat.

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The endangered ecological system was once common along the western slopes of the Great Dividing Range and was known for fertile soils, but has been extensively cleared over several decades.

"The proposed action is likely to have a significant impact on [the woodland and grassland] as it will reduce the extent of the critically endangered ecological community," referral documents said.

"Neoen proposes to offset this impact by contributing to the NSW Biodiversity Conservation Fund."

Ecological experts have said the grasslands are home to countless tree, shrub and plant species along with many animals.

Referral documents submitted to the federal environment department said the battery project's ecological impacts would be managed through an environmental management plan.

The big battery would would contain 50 battery packs on the site that would be 2.5 metres high and 12 metres long.

It is the second big battery that has been proposed for the ACT by Neoen, after it was one of the successful bidders in a reverse auction.

Earlier this year, the company submitted a development application for a big battery storage facility to be built in Jerrabomberra, next to the ACT/NSW border.

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