A 300 megawatt Tesla battery to be installed in Victoria is set to be twice the size of the battery at the Hornsdale Power Reserve in South Australia, making it Australia’s, and the southern hemisphere’s largest battery.
According to the Victorian Government, the battery will be built at the Moorabool Terminal Station near Geelong and will boost the state’s energy reliability, drive down electricity prices and support Victoria’s transition to renewable energy. It will also create local jobs as the Victorian Government takes steps towards a COVID normal.
Minister for Energy, Environment and Climate Change Lily D’Ambrosio today announced that she has directed the Australian Energy Market Operator (AEMO) to sign a contract with renewable energy specialist Neoen to deliver a new Tesla battery to transform Victoria’s energy system and improve reliability.
The government also said that climate change is resulting in hotter summers, and demand for electricity is rising at peak times. At the same time, Victoria’s ageing coal-fired generators are becoming increasingly unreliable, creating a need for additional capacity to safeguard the state’s power supply.
To address these issues, the Andrews Labor Government has secured the Victorian Big Battery. The 300 megawatt battery will be ready by the 2021-22 summer. It will help reduce wholesale prices – and people’s power bills – by storing cheap renewable energy when it’s plentiful and discharging it into the grid when it is needed most.
Neoen will pay for construction of the battery, as well its ongoing operation and maintenance.
Consumers will pay for use of the battery through their power bills, but the reduction in wholesale energy prices delivered by the battery will mean that Victorians pay less for their power – with independent analysis showing that every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses.
Victoria is on track to meet its renewable energy target of 25 per cent by the end of 2020 and the battery will make an important contribution to its targets of 40 per cent by 2025 and 50 per cent by 2030.
With inputs from the Press Release shared by the Victorian Government.