The 300 MW Victorian Big Battery near Geelong is one of the largest energy storage facilities in the world. By unlocking 250 MW of additional peak capacity, it will boost grid security, drive down power prices and support more renewable energy.
250 MW
extra power for peak demand
$160m
CEFC finance
$220m
benefits
The delivery of the Victorian Big Battery is a major achievement for Neoen, not only because it is one of the largest batteries in the world, but also because it represents another key milestone in terms of innovation… We are convinced that large-scale battery storage is a vital element of the energy transition, and we are proud of our dynamic leadership role in this sector. We will continue to build on our experience to deliver world-leading solutions that help to shape and transform the grid of the future, for the benefit of industry and consumers across Australia and around the globe.Xavier BarbaroChairman and CEO, Neoen
Our investment
The CEFC has invested $160 million to finance the design, construction and operation of the Victorian Big Battery (VBB), as part of its strategic focus on energy storage as a priority technology under the Technology Investment Roadmap.
Neoen, one of the world’s leading independent producers of exclusively renewable energy, developed and operates the VBB which consists of 212 Tesla MegaPack storage units with a capacity of 300 MW/450 MWh.
The storage facility is next to Moorabool Terminal Station in Geelong and commenced operations in December 2021.
our impact
The Victorian Big Battery is a world-class example of how utility scale batteries can help electricity networks support a higher penetration of renewable energy, providing dispatchable resources to underpin the increasing share of clean energy expected to power Australia in years to come.
Neoen has signed a System Integrity Protection Scheme (SIPS) contract with the Australian Energy Market Operator (AEMO). The scheme unlocks up to 250 MW of additional peak capacity on the existing Victoria to New South Wales Interconnector. Under the contract, the battery provides an automatic instant response in the event of an unexpected network outage, providing AEMO with additional means of ensuring grid stability. The battery also participates in the National Electricity Market and supports increased penetration of renewables in the Victorian electricity supply through network services such as fast frequency control.
PWC analysis* found that the SIPS process would deliver benefits of more than $220 million to Victorian consumers in the next 11 years, including savings on power bills. If gross savings and AEMO costs for the battery are passed on to consumers, the Portland aluminium smelter would save about $1 million a year on its electricity bills, while the average Victorian industrial consumer could save about $280,000 a year.
Neoen reported that independent analysis predicted that for every $1 invested, the VBB was expected to deliver more than $2 in benefits to Victorian households and businesses.
The VBB took less than a year to build. Its construction brought a significant economic boost to the Geelong region through the COVID-19 pandemic lockdown period, creating more than 150 construction jobs and six full time permanent positions. Community initiatives will be supported through a Community Benefit Fund during the battery’s lifetime.
The CEFC investment in VBB extends its reach in the sector and follows its $50 million investment for the 50 MW expansion of the Hornsdale Power Reserve in South Australia which is also owned and operated by Neoen.
*SIPS 2020 Validation business case for Victorian SIPS service by PWC, November 2020
