Geelong is set to be the site of the Victorian Big Battery, one of the world’s largest lithium-ion batteries, as part of the Victorian Government’s plan to transition to renewable energy and create construction jobs.
Australian Energy Market Operator (AEMO) awarded Neoen a 250-megawatt grid services contract to deliver a new Tesla battery to transform the Victorian energy system and improve reliability.
The battery storage facility will be located next to Moorabool Terminal Station just outside Geelong. It will be delivered in collaboration with Tesla, using its Megapack technology, and network partner AusNet Services.
Construction of the battery will create more than 85 jobs.
The battery is expected to reduce wholesale energy priced by storing renewable energy when the weather makes it plentiful and discharging it into the grid when it is needed most.
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As part of the contract, the battery will provide an automatic response in the event of an unexpected network outage, providing AEMO with an additional means of ensuring grid stability within a fraction of a second.
The battery will also participate in the National Electricity Market and support increased penetration of renewables in Victoria through network services such as fast frequency control.
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, however the Victorian Government expects the reduction in wholesale energy prices delivered by the battery will mean that consumers will pay less for their power.
Independent analysis has shown that for every dollar invested into the battery, there will be more than $2 in benefits to Victorian households and businesses.
To reduce the chances of unscheduled power outages over the peak summer months, the Victorian Big Battery will reserve a portion of its capacity to increase the power flow through the Victoria-New South Wales Interconnector by up to 250 megawatts.
“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,” Energy, Environment and Climate Change Minister Lily D’Ambrosio said.
“Victoria is embracing new technologies that will unlock more renewable energy projects than ever before –delivering clean, cheap, reliable power to all Victorians.”