With climate change resulting in hotter summers, demand for electricity is rising at peak times. At the same time, Victoria’s ageing coal-fired generators are becoming increasingly unreliable, creating a need for additional capacity to safeguard the state’s power supply. To address these issues, the Andrews Labor Government has secured the Victorian Big Battery. The 300 megawatt battery will be ready by the 2021-22 summer. It will help reduce wholesale prices – and people’s power bills – by storing cheap renewable energy when it’s plentiful and discharging it into the grid when it is needed most. Neoen will pay for construction of the battery, as well its ongoing operation and maintenance.

Consumers will pay for use of the battery through their power bills, but the reduction in wholesale energy prices delivered by the battery will mean that Victorians pay less for their power – with independent analysis showing that every $1 invested in the battery will deliver more than $2 in benefits to Victorian households and businesses. Victoria is on track to meet its renewable energy target of 25 per cent by the end of 2020 and the battery will make an important contribution to its targets of 40 per cent by 2025 and 50 per cent by 2030.