One of the world’s largest lithium-ion batteries will be built in the G21 region at the Moorabool Terminal Station, boosting the state’s energy reliability, driving down electricity prices and supporting Victoria’s transition to renewable energy.
The State’s Minister for Energy, Environment and Climate Change Lily D’Ambrosio announced recently that she had 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 Victorian Big Battery will create more than 85 local jobs and deliver over $200 million in investment into Geelong and the G21 region.
With climate change resulting in hotter summers, 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 state government said it had secured the Victorian Big Battery. The 300-megawatt battery will be ready by the 2021-22 summer.
The battery would help reduce wholesale prices by storing cheap renewable energy when it’s plentiful and discharging it into the grid when it is needed most, the Minister said.
Neoen will pay for construction of the battery, as well its ongoing operation and maintenance.
G21 CEO Elaine Carbines welcomed the project saying it would bring jobs to the region and was a major step towards the state’s transition to renewable energy and would boost the reliability of the state’s power supply.
“The Victorian Big Battery is aligned with G21’s vision for the region. Our strategic plan acknowledges the need for new alternative energy opportunities to service the region’s expected rapid growth through to 2050,” Ms Carbines said.
“The battery is expected to create more than 85 local jobs and deliver over $200 million in investment into the Geelong region.
“G21 through our Economic Development and Environment pillars has over many months been supporting the prospect of the battery coming to the region.
“It is a logical fit given the huge investment in wind power in the region and our proximity to the power lines necessary to connect to the state and national power grids.”
The government said consumers will pay indirectly for use of the battery through their power bills, but said the reduction in wholesale energy prices delivered by the battery would mean Victorians will pay less for their power. It said an independent analysis showed that every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses.
The state government said Victoria was 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.
For more details on the Victorian Big Battery, click here.
Source: Based on state government and Neoen media releases