Renewable energy producer Neoen announced that it has been awarded a 250 MW grid services contract by the Australian Energy Market Operator (AEMO). The company stated that the services under the contract will be provided by Neoen’s future 300 MW Victorian Big Battery, being developed in collaboration with Tesla, using its Megapack technology, and network partner AusNet Services.

The addition of large-scale battery technology to a renewable energy system will be instrumental in helping the State reach its objective of 50% renewables by 2030, the company stated.

The Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change said:

“By securing one of the biggest batteries in the world, Victoria is taking a decisive step away from coal-fired power and embracing new technologies that will unlock more renewable energy than ever before.”

The company stated that The Victorian Big Battery, slated to be operational by the end of 2021, will help to modernise and stabilise the grid in Victoria. The contract, which is set to run until 2032, will unlock up to an additional 250 MW of peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade of Australian summers. 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.

Louis de Sambucy, Neoen Australia’s Managing Director said:

“We are delighted to have won the SIPS contract and would like to thank AEMO and the Victorian Government for placing their trust in us. We are looking forward to working once again with Tesla and AusNet to deliver this world-leading battery storage facility over the coming months. We are extremely proud to be launching a project of this scale and innovation in support of Victoria’s clean energy transition.”

Tony Narvaez, AusNet Services Managing Director said:

“AusNet Services is proud to be the network partner with Neoen and Tesla on this world-leading project. Large scale energy storage is an important component in the transition to a renewable future, while helping to maintain network stability and energy security for Victoria.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer added:

“The Victorian Big Battery and the grid support services it will provide heralds a new era for large scale energy storage in Australia. We are fiercely proud to be at the forefront of this vital element of the energy transition. We will continue to build on this experience to deliver world-leading solutions that help to shape and transform the grid of the future for the benefit of industry and consumers across Australia and around the globe.”