Maoneng Australia expects to begin construction late in 2022 on the $150 million facility at Gould Creek, 22 kilometres north of Adelaide.

It should be up and running in about another 12 months.

Chief executive Morris Zhou said the project highlighted the importance of grid-scale energy storage and would support the state's renewable energy goals.

"This approval is good news for all South Australians, as more battery storage will help smooth the transition to clean energy," he said.

"South Australia has high levels of renewable energy generation, which is a positive development but can create challenges balancing supply and demand due to the intermittency of renewables.

"Our proposed battery storage will help manage this, supporting local energy reliability and security while also promoting greater uptake of renewables as a whole."

Covering 3.4 hectares, the energy facility will store about 450 megawatts of electricity for supply into the SA power grid.

Construction work alone will create up to 160 jobs and there will be two ongoing maintenance positions.

Maoneng said it was in talks with local industry groups to ensure local businesses and contractors were positioned to take up job and supply opportunities.

Australian Associated Press