The Victorian government has fast-tracked a development approval (DA) for United Kingdom-headquartered energy storage company Eku Energy’s $400 million (USD 262 million) Tramway Road battery energy storage system (BESS) in the southeastern Gippsland region of the state.
The 300 MW / 1,200 MWh BESS is located approximately 161 kilometres southeast of Melbourne near the town of Hazelwood North in the Latrobe Valley and will connect to the Hazelwood Terminal Station, possibly adjacent to the proposed Marinus Link converter station.
Tramway BESS will have the capacity to power 104,000 homes during times of high demand and create 150 jobs during construction, with five ongoing once operational.
Since the Victorian Development Facilitation Program (DFP) expanded to include renewable energy projects in 2024, the government has unlocked approved for over $7.8 billion worth of investment across 22 projects.
Once completed, the projects will collectively generate enough power for over 700,000 households annually, which includes battery storage capable of meeting evening peak demand for 1.8 million households.
Image Eku Energy
Eku Energy Policy Director Rachel Rundle said the Tramway Road BESS’ development approval marks a major milestone for the project’s delivery.
“We are one step closer towards delivering infrastructure that is critical in supporting Gippsland and Victoria in its transition towards a clean energy future,” Rundle said.
“As we continue to develop this important project, we look forward to our engagement with First Nations representatives, the local community, businesses and stakeholders to ensure the Tramway Road BESS project delivers lasting local and regional benefits.”
The local community and stakeholders have been consulted for this proposed development since November 2024.
Subject to ongoing grid connection and procurement activities, construction of the Tramway Road BESS could commence by late 2026 with operations commencing in 2028.
Eku Energy has two operational BESS, one also located in the Latrobe Valley, the 150 MW / 150 MWh Hazelwood BESS, and at Cranbourne West, 50 kilometres southeast of Melbourne, the 200 MW / 400 MWh Rangeback BESS.
The company has one BESS under construction, the 250 MW / 500 MWh Williamsdale BESS, and six under construction including Tramway, with three in New South Wales (NSW), and two in Queensland, all 300 MW / 1,200 MWh, expect the Griffith BESS in Yoogali, NSW at 100 MW / 800 MWh.
Eku Energy is jointly owned by Macquarie Asset Management and the British Columbia Investment Management Corporation.
Image: Marinus Link
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