Victorian Minister for Energy, Environment and Climate Change Lily D’Ambrosio has advised the Australian Energy Market Operator to contract with renewable energy specialist Neon to create a new 300-megawatt Tesla battery at the Moorabool Terminal station in the vicinity of Geelong.
The new battery will serve as a back-up of renewable energy power and will store renewable energy when it stands in generous supply and return this into the grid when required.
It will also help to reduce the possibility of unscheduled outages in the summer as it will reserve a part of its capacity to enhance the power flow through the Victoria-New South Wales Interconnector by up to 250 MW.
According to the deal, Neon will provide payment for the battery’s building and operation, with consumers to be charged for its use by way of their power bills.
The government states that consumers will pay a lower rate, however, as the capacity supplied by the battery decreases the wholesale price of energy.
The announcement arrives as Victoria is wanting to attain a target of 50 percent renewable energy by the year 2030.
Via a statement, D’Ambrosio stated the battery was required to protect the state’s power supply as climate change produces warmer summers and more intensive energy need at peak times while the state’s aged coal-fired generators are growing less dependable.
The big battery, she said, will shield our network in summer, open jobs and decrease energy prices – and support the economic recovery in the wake of the coronavirus pandemic.
The battery will be presented by the 2021/22 summer.