Neoen has been awarded a 250MW grid services contract with the Australian Energy Market Operator (AEMO) enabling it to proceed with the next phase of a planned 300MW battery in Victoria.
The AEMO tender was initiated by the Victorian Government.
The Victorian Big Battery will help to “modernise and stabilise” the grid in Victoria and will be “instrumental” in helping the state reach its 50% renewables by 2030 goal, Neoen said.
The Victorian Big Battery, expected to be operational by the end of 2021, will become one of the world’s largest batteries at double the size of Hornsdale Power Reserve in South Australia, also owned and operated by Neoen.
It will be delivered together with Tesla, and network partner AusNet Services.
The 300MW/450 megawatt-hour Victorian Big Battery will be located next to Moorabool Terminal Station in Geelong, Victoria.
Grid services the battery will provide under contract to AEMO include the System Integrity Protection Scheme (SIPS), which will run until 2032 and is the result of the SIPS 2020 procurement process initiated by the Victorian Government.
The battery will unlock up to an additional 250MW of peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade of Australian summers.
Under 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.
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.
The battery will lead to over 80 construction jobs and six full time permanent jobs.
Where possible, local suppliers will be contracted, with AusNet already having sourced the project’s power transformers from Melbourne-based Wilson Transformer Company.
Local community building and education initiatives will also be supported across the project’s lifetime through a Community Benefit Fund.
Neoen Australia managing director Louis de Sambucy said: “We are delighted to have won the SIPS contract and would like to thank AEMO and the Victorian Government for placing their trust in us.
“We are looking forward to working once again with Tesla and AusNet to deliver this world-leading battery storage facility over the coming months. We are extremely proud to be launching a project of this scale and innovation in support of Victoria’s clean energy transition.”
Lily D’Ambrosio, Minister for Energy, Environment and Climate Change, said: “By securing one of the biggest batteries in the world, Victoria is taking a decisive step away from coal-fired power and embracing new technologies that will unlock more renewable energy than ever before.”