A massive 600MW/1600MW big battery has begun construction in Melbourne’s outer west after the Victorian government’s newly re-booted State Electricity Commission agreed to tip $245 million into the project.
The Melbourne Renewable Energy Hub being developed near Melton by Equis Renewables will be the biggest battery in Australia once developed to its full capacity of 1,200MW and at least 2,400MWh.
But the SEC has so far invested only in the first stage of the battery, which will be made up of three seperate components, including a 200MW four hour (800MWh) battery, and two separate 200MW, two hour (400MWh) batteries.
It is the first investment from the reformed state utility’s $1 billion kitty, set aside to deliver 4.5GW of new renewables – 2.6GW of it between now and 2028 – with a focus on storage and onshore generation.
“The investment is a huge step forward in increasing Victoria’s renewable storage capacity – which is critical to meeting our nation leading targets of 95 per cent renewable energy generation by 2035,” said state energy minister Lily D’Ambrosio.
The funds from the SEC mean Equis can get cracking on the first phase of MREH – construction officially began on Thursday and was marked with a “sod turning” ceremony pictured below. Equis says the battery will be completed by the end of 2025.
“The SEC has proven to be a commercial and valuable partner, adding immediate value to MREH and ensuring a rapid, cost-effective construction program,” said Equis founder and managing director, David Russell.
“The result will be one of the largest battery energy storage projects in the world. It will begin enhancing Victoria’s grid and power price stability by the end of 2025,” Russell said.
The deal means the two, two-hour (400MWh) battery components will be owned 70% by Equis and 30% by the SEC, while the four hour, 800MWh battery will be owned 51% by Equis and 49% by the SEC.
Equis says 200MW/800MWh battery will be subject to a SEC offtake agreement for 100% of its capacity, allowing the SEC to directly ensure firming for solar and wind projects already contracted through state government auctions and future investments by the SEC.
The other two batteries will be more focused on the merchant market and responding to unexpected events on the grid.
Tesla will provide 444 fully integrated Tesla Megapack Batery Energy Storage Systems (BESS) for the project, its biggest contract in Australia to date. It actually equates to 1720MWh of capacity, but the connection points allow for 1600MWh.
AusNet and Lumea will provide connecting transmission infrastructure. Samsung C&T and Genus Plus Group will undertake the engineering, procurement and construction of balance of plant of the project.
Equis re-emerged on the scene in Australia just over a year ago, with a portfolio spanning up to 800MW of wind projects in Tasmania and five big battery storage projects spread across another four states.
The original Equis, a Singapore-based company that built South Australia’s first solar farm at Tailem Bend, among other projects, was bought by Global Infrastructure Partners in 2018 and was later renamed Vena Energy.
The brand then reappeared in the form of Equis Development, a new company featuring some of its original executives, including Russell, and backing from the Abu Dhabi Investment Authority and the huge Ontario Teachers Pension Plan.
As a “Project of State Significance”, MREH has secured land and approvals for 1,200MW of which 600MW has commenced construction through MREH Phase 1.
The remaining 600MW is currently being developed with longer term storage solutons of up to 12 hours, Equis says.
See RenewEconomy’s updated Big Battery Storage Map of Australia
