Australian renewables developer GMR Energy has entered into an early works agreement with transmission network service provider AusNet for a 240MW battery energy storage system (BESS) on Victoria’s Mornington Peninsula.
The agreement allows for the construction of the transmission infrastructure to connect the 240MW/480 megawatt hour (MWh) Mornington BESS plant to the grid.
Completion is expected by the end of 2024.
The company is also in final negotiations with the engineering, procurement, and construction contractor to build the battery project which will be funded with debt and equity.
GMR Energy’s CEO and Managing Director, Morris Zhou (left), said the early works agreement was a “key milestone” on the path to deliver critical energy infrastructure that would support the Victorian Government’s objective of improving the reliability of regional electricity in an area that is particularly exposed to fluctuations in demand.
Zhou said: “The addition of the Mornington BESS, located adjacent to AusNet’s existing Tyabb substation, will also help ensure a successful transition to renewables, as it will draw and store energy from the grid during off-peak periods and dispatch energy to the grid during peak periods, generating power for the equivalent of 40,000 average Australian homes.”
He added: “With the current supply chain issues meaning a significant bottleneck in the availability of transformers and other materials required, we have partnered with AusNet to commence early works and procure long-lead items.”