Victoria unveils plan for giant Tesla battery
With a new deal with Elon Musk’s Tesla, Victoria is set to host a battery which is one of the biggest in the world.
Victoria will play host to one of the biggest lithium ion batteries in the world, dwarfing the Tesla battery in South Australia, with the Victorian government and AEMO again turning to Elon Musk to deliver summer grid stability in the state.
Victoria has called in the Australian Energy Market Operator to organise a 300 megawatt Tesla battery near Geelong, contracting Neoen to build and operate the facility.
The price of the battery was not disclosed, but Victorian Energy Minister Lily D’Ambrosio said its cost would be added to the bills of Victoria households and businesses – but that its delivery was expected to drive down energy costs in the state.
Victoria has a renewable energy target of 40 per cent by 2025, and Ms D’Ambrosio said the new battery would assist in helping get more solar and wind energy into the state’s energy supply, and ease concerns about summer blackouts if higher temperatures push the state’s ageing coal-fired power stations beyond their operating limits.
“The big battery will help protect our network in summer, create jobs and drive down energy prices – as well as supporting our recovery from the coronavirus pandemic,” she said.
The battery is due to be operational by the end of 2020 and, as part of the build Neoen will take a 250MW grid services contract with AEMO.
AEMO said that, under the contract, it will reserve 250MW from Neoen’s 300MW battery to operate in a control scheme to increase the capability of the Victoria to New South Wales Interconnector to respond to unexpected network outages in Victoria from November 2021.
“Under the contract, the battery will provide an automatic response in the event of an unexpected network outage, providing AEMO with an additional means of ensuring grid stability,” the AEMO said in a statement.
“Batteries are genuinely well suited to perform this service because they can respond in a fraction of a second.”
The battery is also expected to help ease access to the grid for solar projects in western NSW.
The deal is expected to create an initial 85 jobs with Neoen paying for the construction of the lithium-ion battery as well as ongoing operation and maintenance.
The state government said independent analysis shows every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses.
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