The federal government’s green bank has committed $160 million in debt financing for the Victorian Big Battery project, a storage system that will be one of the largest in the world and which is expected to cut annual energy costs for the most intensive industrial user by up to $1 million.

The funding from the Clean Energy Finance Corporation means France’s Neoen has now reached financial close on the 300 megawatt battery, announced in November. It is expected to be up and running by next summer at a site near Geelong and will beef up the security of the grid as more renewable generation comes online.