Power network owner AusNet Services has joined with retailer EnergyAustralia to deliver Victoria's first grid-scale electricity storage project, located at a bottleneck in the transmission grid in north-west Victoria, where a surge in renewable energy generation is raising concerns about grid stability.

The 30-megawatt unit, with the equivalent capacity of 6000 household batteries, is thought to be the first standalone grid-scale storage project in the country and the first to be owned by a transmission company. It was one of two battery projects in regional Victoria announced in March by then federal energy minister Josh Frydenberg, involving up to $25 million from each of the state government and the Australian Renewable Energy Agency.