Victoria’s State-Owned Energy Firm Begins Construction on ‘Mega Battery’

Premier of Victoria Jacinta Allan speaks during the Victoria State Memorial Service Held For Ron Barassi AM at Melbourne Cricket Ground in Melbourne, Australia on Nov. 10, 2023. Asanka Ratnayake/Getty Images

The State Electricity Commission (SEC) has begun construction of a 600-megawatt battery, which is expected to store enough energy to power up to 200,000 homes during peak periods.

Construction of the battery is underway in Melbourne’s west, with the first of 444 Tesla Megapack battery components now being installed.

The project is expected to be operational by 2025. Once completed, the hub will include three battery components providing 1.6 gigawatt-hours of energy storage.

Victoria Premier Jacinta Allan and Minister for the State Electricity Commission Lily D’Ambrosio visited the construction site on Sept. 4th.

“We’re building for our future—and the SEC is unlocking more renewable and affordable energy for Victorians with one of the biggest batteries in the world,” Allan said.

This announcement coincides with the federal government’s recent selection of six new renewable battery projects, including two in Victoria, as part of the initial round of the Capacity Investment Scheme (CIS).

These projects, collectively delivering over 1,000 megawatts of capacity, are a key element of the nation’s strategy to achieve its 2030 renewable energy target.

One of these projects, the Wooreen 350 MW energy storage system, will be located in Victoria’s Latrobe Valley, further enhancing the state’s energy storage capabilities.

Minister D’Ambrosio highlighted the importance of these developments, noting that the SEC’s battery project will contribute 23 percent of Victoria’s 2030 storage capacity target.

“With large amounts of solar and wind coming online, batteries will be able to suck it up and dispatch it when needed,” she said.

By next year, the hub is expected to start storing excess rooftop solar and surplus grid energy, providing extra power during peak times to meet Victoria’s growing demand.

“It will be connected to three Renewable Energy Zones, allowing more energy to connect to the grid—helping to accelerate the energy transition and drive down energy bills,” D’Ambrosio added.

The Melbourne Renewable Energy Hub is the first project from the SEC’s initial $1 billion investment and is co-owned with renewable energy investor Equis Australia. This project aligns with Victoria’s broader goal of meeting energy storage targets of at least 2.6 gigawatts by 2030 and 6.3 gigawatts by 2035.

Member for Sydenham Natalie Hutchins emphasised the project’s benefits beyond energy storage.

“This project not only creates jobs and opportunities for Victorians in the western suburbs, but it is also critical to increasing Victoria’s renewable storage capacity,” she said.

Since work began late last year, more than 530 people, including apprentices and cadets, have worked to complete earthworks and other infrastructure to prepare the site for battery installation.