Victoria’s biggest battery becomes first project through new renewables fast track

The Victorian government has given the green light to what it says will be the state’s biggest big battery, at least for now – a 350 megawatt (MW), two hour energy storage project being developed by ACEnergy in the Wimmera region.

The Allan Labor government said on Thursday that the Joel Joel Battery Energy Storage Project has been approved after just nine weeks in the planning assessment pipeline, marking the first renewables project to be fully processed from start to finish under the state’s fast-tracked approvals pathway.

(The Joel Joel battery will be sized at 350 MW and 700 MWh, and may be overtaken by the Melbourne Renewable Energy Hub, although that facility is to be built over three separate stages).

The Development Facilitation Program (DFP) was launched by the Allan Labor government in March, making proposed wind, solar and battery projects eligible for an accelerated development pathway, and removing the planning panel process and third-party appeals.

At the time, Premier Jacinta Allan said important renewables projects were regularly being tied up for years seeking approval, leading to a build-up of around $90 billion worth of project investment value in the pipeline.

According to Clean Energy Council report, only four renewable energy projects were completed in Victoria in 2023 – two solar farms and two wind farms. The state, which is targeting a 65 per cent renewables share of the grid by 2030 and 95 per cent by 2035, is currently sitting at just under 40 per cent.

The fast-track program, which has been criticised by some as a move to “steam roll” farmers and regional communities, heeds the Australian Energy Market Operator call, this week, for the “on time and in full” delivery of solar, wind and energy storage projects, as “critical” to a reliable future electricity supply.

“It is critical that expected investments in generation, storage and transmission are delivered on time and in full,” AEMO chief Daniel Westerman said on Thursday, following the release of the market operator’s 2024 Electricity Statement of Opportunities (ESOO).

“If delays occur to projects already underway or further investment does not materialise, then the outlook for reliability will deteriorate.”

“This streamlined process allows us to bring good renewable projects like battery storage systems online faster so that we can provide more Victorians with cheaper and cleaner energy,” state planning minister Sonya Kilkenny said on Thursday.

The $250 million ACEnergy battery in the Northern Grampians, around 25km east of Stawell, will connect to the existing Bulgana Terminal Station and the Bulgana to Ballarat Overhead Powerline. It will be located close to Neoen’s Bulgana wind farm and 20 MW/32 MWh battery.

According to ACEnergy, the new big battery will provide critical grid services, such as frequency regulation and peak load management, contributing to a stable and efficient electricity supply.

“This infrastructure will help mitigate the impacts of power fluctuations and outages, aiming to deliver a more dependable energy system for households and businesses alike,” the company’s website says.

“Additionally, by utilising existing transmission lines, we can minimise construction impacts and reduce the need for new infrastructure development.”

Victorian energy minister Lily D’Ambrosio says the addition of large-scale energy storage will help usher out coal in the state, and make way for more cheap solar and wind.

“Victoria’s ageing coal fired generators are closing and the cost of fossil fuels are rising globally – streamlining planning approvals for projects like this one will ensure we can keep the lights on and power prices down,” D’Ambrosio said on Thursday.