Installation of the first of 444 Tesla Megapack battery systems is underway at the estimated $1.9 billion (USD 1.28 billion) Melbourne Renewable Energy Hub (MREH) being built by Singapore-headquartered infrastructure developer Equis in collaboration with Victoria’s State Electricity Commission (SEC).
The initial stage of the project, being constructed across a 90-hectare site at Plumton in Melbourne’s outer west, will comprise three separate battery energy storage systems. This includes a 200 MW / 800 MWh battery and two 200 MW / 400 MWh batteries, each with individual points of connection to the National Electricity Market’s 500 kV high-voltage transmission system.
This is expected to form just the first phase of the project with Equis having secured approvals for up to 1.2 GW / 2.4 GWh of energy storage and a 12.5 MW co-located solar farm at the site.
Equis has previously said “the remaining 600 MW is currently being developed” and is reportedly considered flow battery technologies to meet this long-duration target.
Tesla has been contracted to supply its Megapack battery technology for the first stage of project and will oversee the commissioning of the MREH.
The state government, which has invested $245 million to ensure the delivery of the first phase, said the project is on track to commence operations in 2025.
Victorian Energy Minister Lily D’Ambrosio said the MREH will play a key role in the clean energy transition, helping the state achieve its target of at least 2.6 GW of energy storage capacity by 2030 and 6.3 GW by 2035.
“The SEC’s big battery will deliver 23% of Victoria’s 2030 storage capacity target,” she said, adding that large-scale storage capacity is essential as the state targets 95% renewable energy by 2035.
“With large amounts of solar and wind coming online, batteries will be able to suck it up and dispatch it when needed,” she said.
D’Ambrosio said the MREH is the first project from the SEC’s initial $1 billion investment in renewable energy projects to provide 4.5 GW of new generation and storage assets.
The MREH is part of a “high-quality” pipeline of 17 battery energy storage projects with a combined capacity of 4.4 GW Equis recently announced it is developing across Australia.
Among the portfolio is the 200 MW / 800 MWh Lower Wonga battery being developed in Queensland’s southeast, the 300 MW / 600 MWh Calala battery being developed near Tamworth in New South Wales and the proposed 200 MW / 800 MWh Koolunga battery project to be built near Brinkworth in South Australia.
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