Neoen, French multinational renewable energy producer, has completed financial close on the Victorian Big Battery, a 300MW/450MWh battery storage facility located near Geelong, Victoria.

The project will be delivered in collaboration with Tesla and AusNet Services and will be one of the largest batteries in the world, providing stability to Victoria’s transmission network.

Financing of the project finished just months after Neoen secured the contract with AEMO and it will be funded by a combination of equity provided by Neoen and $160 million from the Clean Energy Finance Corporation (CEFC), on behalf of the Australian Government.

Construction has already commenced, providing a well-timed economic boost for the Geelong region, with the project on track to be delivered before the next Australian summer.

The System Integrity Protection Scheme (SIPS) contract will run until 2032, unlocking up to 250MW of additional peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade of Australian summers. Under the contract, the battery will provide an automatic response in the event of an unexpected network outage, providing AEMO with an additional resource to ensure grid stability.

Energy storage is a priority technology under the Australian Federal Government’s Technology Investment Roadmap, as an enabler of cost effective and reliable low emission electricity. The Victorian Big Battery will contribute to the dispatchable resources needed to underpin the increasing share of renewable energy that will make up Australia’s future energy mix.

“We are delighted to announce that the Victorian Big Battery has reached this important financial milestone,” Neoen Australia managing director Louis de Sambucy says.

“With the help and hard work of our partners, Tesla and AusNet Services, we are on track to deliver this project before the next Australian summer and are looking forward to playing our part in helping Victoria reach its ambitious target of 50% renewable energy by 2030.”

Victorian Minister for Energy, Environment and Climate Change Lily D’Ambrosio speaks on the importance of the project: “It will create jobs and drive down energy prices, while supporting our transition to renewable energy.”