The Australian Energy Market Operator (AEMO) has signed a contract with renewable energy specialist Neoen to deliver a new Tesla battery that will transform Victoria’s energy system and improve reliability.
The 300 megawatt battery – to be installed near the Moorabool Terminal Station, just outside Geelong – will help reduce wholesale prices by storing cheap renewable energy when the weather makes it plentiful and discharging it into the grid when it is needed most.
The Victorian Big Battery, which will reserve a portion of its capacity to increase the power flow through the Victoria-New South Wales Interconnector by up to 250 MW, will also help lower electricity prices for all Victorians by storing cheap renewable energy, support solar and wind projects and help to deliver a more secure and modern energy system.
Victorian Energy Minister Lily D’Ambrosio said consumers will pay for use of the battery through their power bills, with independent analysis showing that every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses.
“The big battery will help protect our network in summer, create jobs and drive down energy prices – as well as supporting our recovery from the coronavirus pandemic,” the Minister added.
“Victoria is embracing new technologies that will unlock more renewable energy projects than ever before –delivering clean, cheap, reliable power to all Victorians.”
The construction costs for the battery, as well as the costs for its ongoing operation and maintenance, will be covered by Neoen. The construction phase is expected to create more than 85 jobs, with the battery to be commissioned in time for the 2021-22 summer.
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