Victoria Completes Big Battery Near Melbourne

Hornsdale Power Reserve, also known as the Tesla big battery, in Adelaide, Australia on Dec. 5, 2018. AAP Image/Hornsdale Power Reserve

The Victoria Labor government has announced the completion of the Rangebank battery, which is set to be one of the largest in the state.

The Rangebank battery, located next to the Cranbourne terminal station, is a 200-megawatt (MW), 400-megawatt-hour (MWh) energy storage system developed by Eku Energy and Shell Energy.

During peak periods, it has the capacity to power 80,000 Victorian homes for an hour.

The government highlighted the battery’s role in managing renewable energy.

“By soaking up and storing renewable energy to be discharged at times of peak demand, the Rangebank battery will help to lower energy bills for households and businesses and provide essential grid system services to support the delivery of safe, secure, and reliable electricity for our homes, businesses, hospitals, and schools,” the government said.

Renewable Storage Targets in Focus

The Allan Labor government has committed to ambitious renewable energy storage targets, legislating a minimum of 2.6 gigawatts (GW) by 2030 and 6.3 GW by 2035.

Victoria already leads the nation in large-scale energy storage, with 11 systems delivering a total output of 540 MW.

Minister for Energy and Resources Lily D’Ambrosio expressed confidence in the state’s progress.

“Our nation-leading renewable energy storage targets provide certainty and underpin confidence as we deliver the infrastructure our state needs to continue to drive us forward,” she said.

The Rangebank battery is part of a broader push, with 12 additional utility-scale battery projects under construction or commissioning in Victoria.

Together, these will contribute 1.4 GW of output capacity and 3.2 GWh of storage, supporting the state’s goal of achieving 95 percent renewable energy generation by 2035.

Concerns Over Rising Costs and Policy Management

While celebrating renewable energy advancements, the government is being criticised for the financial and social impacts of its energy policies.

Documents obtained under Freedom of Information reveal that delays in critical transmission infrastructure, such as the KerangLink project, could significantly increase Victorian families’ energy bills.

The document indicates that a two-year delay could cost the average Victorian household $1,556 over 15 years, while a four-year delay could result in an additional $4,816 in costs.

Landholders along high-voltage transmission routes are also expected to face reduced rights due to compressed timelines for community engagement.

A January 2024 report by the St Vincent de Paul Society further underscored the issue, noting that Victorian households have faced the steepest increases in electricity and gas prices in Australia—28 percent and 22 percent, respectively, over the past year.

Opposition Criticises Energy Management

David Davis, the Shadow Minister for Energy, Affordability, and Reliability has also criticised the government’s handling of energy policy.

“Labor has failed to plan for Victoria’s energy security and reliability,” he said.

“After 10 years of Labor and Lily D’Ambrosio’s decade as Energy Minister, their legacy will be of surging prices and energy insecurity.

“Labor cannot manage money, cannot manage our energy system, and Victorians are paying the price,” Davis added, pointing to the lack of planning and transparency in managing energy transitions.