- Published:
- Wednesday 4 November 2020
One of the world’s largest lithium-ion batteries will be built at the Moorabool Terminal Station, to boost the state’s energy reliability, drive down electricity prices and support Victoria’s transition to renewable energy – as well as creating local jobs as we take steps towards a COVID normal.
Minister for Energy, Environment and Climate Change Lily D’Ambrosio today announced that she has 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 the Geelong 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 Andrews Labor Government has secured the Victorian Big Battery. The 300 megawatt battery will be ready by the 2021-22 summer. It will help reduce wholesale prices – and people’s power bills – by storing cheap renewable energy when it’s plentiful and discharging it into the grid when it is needed most.
Neoen will pay for construction of the battery, as well its ongoing operation and maintenance.
Consumers will pay for use of the battery through their power bills, but the reduction in wholesale energy prices delivered by the battery will mean that Victorians pay less for their power – with independent analysis showing that every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses.
Victoria is 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.
Quote attributable to Minister for Energy, Environment and Climate Change Lily D’Ambrosio
“The big battery will help protect our network in summer, create jobs and drive down energy prices – as well as supporting our economic recovery from the coronavirus pandemic.”
Quote attributable to Member for Lara John Eren
“I am proud that Moorabool will host Australia’s largest battery. Not only will it support local jobs and investment, but it makes an important contribution to Victoria’s clean energy future”
Quote attributable to Member for Bellarine Lisa Neville
“Victoria is embracing new technologies that will unlock more renewable energy projects than ever before.
Quote attributable to Member for Geelong Christine Couzens
“This is a massive win for Geelong. It creates local jobs, while securing our role in the renewables revolution.”
Quote attributable to Member for Western Victoria Gayle Tierney
“New energy technologies such as the Victorian Big Battery will play a central role in our state’s economic recovery, and our region has the skills and expertise to deliver for Victoria.
Quote attributable to Member for South Barwon Darren Cheeseman
“The Geelong region is kicking goals in the transition to clean energy. The Victorian Big Battery will cover an area the size of GMHBA Stadium and create enough jobs for more than four football teams."