Neoen to build 300MW battery in Victoria to assist in grid stability, energy security

London — French renewable energy producer Neoen will build a 300 MW battery in Geelong, Australia, due to be one of the world's largest, after winning a tender initiated by the Victorian Government.

The company said Nov. 5 that the tender had allowed it to be awarded a 250 MW grid services contract with Australian Energy Market Operator (AEMO), which enabled it to continue with the next phase of its 300 MW/450 MWh Victorian Big Battery project to be delivered with carmaker Tesla, using its Megapack technology, and network partner AusNet Services.

The Victorian Big Battery aims to use new technology to modernize and stabilize the grid, assist in energy security and unlock substantial capacity within the existing Victorian electricity network, while also assisting the state to reach its 50% renewables goal by 2030.

Minister for Energy, Environment and Climate Change Lily D'Ambrosio said that, by securing one of the biggest batteries in the world, Victoria was "taking a decisive step away from coal-fired power and embracing new technologies that will unlock more renewable energy than ever before."

Under the contract, the battery will provide an automatic response in the event of an unexpected network outage, providing AEMO with an additional means of ensuring grid stability.

"Batteries are genuinely well suited to perform this service because they can respond in a fraction of a second," Neoen said. "The battery will also participate in the National Electricity Market and support increased penetration of renewables in Victoria through network services such as fast frequency control.

The company expects the battery to be operational by the end of 2021, with the system integrity protection scheme (SIPS) contract with AEMO due to run until 2032 and unlock up to 250 MW of additional peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade of Australian summers.

Neoen chairman and CEO Xavier Barbaro said the Victorian Big Battery and the grid support services it would provide heralded a new era for large-scale energy storage in Australia.

"We will continue to build on this 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," he said.