Victoria’s SEC to build state’s first government owned solar and battery project

The Victoria government’s newly created State Electricity Commission has announced the purchase and development of what will be the first government owned solar and battery project in the state – to be epynomously known as the SEC Renewable Energy Park.

The $370 million project will include a 119 megawatt (MW) solar facility, backed by a 100 MW, 200 MWh big battery, and will be built near the Horsham sub station and existing transmission line.

The project was once known as the Horsham solar farm, and under the ownership of Esco Pacific was one of the winners of the state government VRET2 renewables auction in 2022, but never got built.

Now, under government ownership, the battery component will be doubled in size.

Horsham was one of a number of solar project bought from Esco Pacific by the Swedish developer OX2, which announced in September that it had sold an unspecified 119 MW solar project in Victoria to an un-named buyer. Its identity has now been confirmed, and the state government ownership is presumably the reason for the coyness.

The SEC says the behind-the-meter battery – the solar and battery will have a single connection point – will be used to soak up cheap solar during the day and sell power to the grid later in the day, presumably when demand and prices are higher. This will maximise returns and have a dampening effect on wholesale prices at that time of the day.

Premier Jacinta Allan and energy minister Lily D’Ambrosio said in a joint statement that it will be the first 100 per cent government-owned energy generator in Victoria of any kind since the Liberal Party privatised the state’s energy system more than two decades ago.

It is the second major investment by the newly formed SEC, which was given $1.1 billion to help deliver 4.5 gigawatts of new wind, solar and storage projects. It has also invested $245 million in the 600 MW, 1600 MWh battery project known as the Melbourne Renewable Energy Hub, which is at the half way point of construction.

“The Liberals sold off our energy assets, and they’ll ask Jeff Kennett for advice on how to do it again. We’re investing in renewable energy projects for people, not profit,” D’Ambrosio said in a statement.

The SEC renewable hub is expected to be on line in 2027 and will be built and managed for the first five years by OX2 under the terms of the sale agreement.

The SEC will set up a community benefits fund that will invest $42,000 a year back into the local area during the project’s construction, and a further $70,000 every year once the project is operational.

For more information please see Renew Economy’s Big Battery Storage Map of Australia.