Battery storage: Victorian taxpayers to fund $25m power grid buffer

VICTORIAN taxpayers will fund $25 million into battery storage to provide a buffer in the weakest spots of the state’s power grid.

Greedy energy retailers are gouging Victorians by up to $400 a year by increasing their cut of household power bills.

• Our state is right off ‘the grid’
• Alarm over state power shortage
• Families’ $520 bill for green energy

VICTORIAN taxpayers will fund $25 million into battery storage to provide a buffer in the weakest spots of the state’s power grid.

Premier Daniel Andrews and Energy Minister Lily D’Ambrosio today announced an extra $20 million to support large-scale energy storage projects across the state.

It comes as a report revealed greedy energy retailers are gouging Victorians by up to $400 a year by increasing their cut of household power bills.

Mr Andrews this morning didn’t rule out more regulations to force power companies to be more transparent in their dealing with consumers to ensure they weren’t being ripped off.

The new funding comes on top of the $5 million already announced and will allow energy storage companies and network businesses to boost energy storage capacity in the state to 100 megawatts by the end of 2018.

Premier Daniel Andrews. Picture: Nicole Garmston

It will be aimed at providing backup power for some of the state’s most vulnerable areas, which are typically those regions furthest from the points of generation near Melbourne.

“This is about providing some instantaneous backup in some weak spots in our grid and adding to the total amount of power we’ve got at any one time,” Mr Andrews said.

“Whilst Victoria rates strongly against other states when it comes to the reliability and affordability of our energy supply, we do know that prices have gone up.

“There are real pressures on businesses and households and we do know that we always have to keep working hard to ensure our energy supply is as reliable and diverse as it can possibly be.”

The Grattan Institute report today revealed that competition in electricity retailing had failed to deliver lower prices for consumers and urged governments to step in and re-regulate prices if the industry doesn’t address the situation.

It comes as the Victorian government is also undertaking a review into power prices in the state, with a report to be handed down in May.

Mr Andrews said today’s report showed the national energy market is “not working for ordinary Victorians”.

“It is favouring very large companies who are making significant profits, while it does not necessarily benefit and support those that need it most,” Mr Andrews said.

Victoria’s Energy Minister Lily D’Ambrosio said today’s announcement was a “game-changer”.

“We know of course that communities and businesses want sustainable, renewable, affordable and of course reliable energy supply,” she said.

Opposition energy spokesman David Southwick said the Andrews Government created the energy crisis by tripling the state’s brown coal royalty rate.

“Daniel Andrews tripled the tax on coal, introduced a ridiculously high state-based Renewable Energy Target and forced the closure of Hazelwood which represents 22 per cent of Victoria’s electricity generation capacity,” Mr Southwick said.

“If Daniel Andrews is serious about trying to make electricity more affordable, he should immediately match the Liberal Nationals commitment to abolish the Victorian Renewable Energy Target.”