Neoen to build 300 MW Victorian Big Battery in Australia, one of the world's
* Neoen has been awarded a 250 MW grid services contract with the Australian
Energy Market Operator (AEMO) in a competitive tender initiated by the
* This contract enables Neoen to proceed with the next phase of its 300 MW /
450 MWh Victorian Big Battery in Geelong, Australia
* The Victorian Big Battery will become one of the world's largest batteries at
double the size of Hornsdale Power Reserve in South Australia, also owned and
operated by Neoen
* To be delivered together with Tesla, and network partner AusNet Services, the
Victorian Big Battery will make highly effective use of new technology to
modernise the grid and unlock substantial capacity within the existing
Victorian electricity network
Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world's leading and
fastest-growing producers of exclusively renewable energy, has been awarded a
250 MW grid services contract by the Australian Energy Market Operator (AEMO).
The services will be provided by Neoen's future 300 MW Victorian Big Battery,
set to become one of the largest batteries in the world. The battery storage
facility will be located next to Moorabool Terminal Station in Geelong,
Victoria. It will be delivered in collaboration with Tesla, using its Megapack
technology, and network partner AusNet Services.
This System Integrity Protection Scheme (SIPS) contract with AEMO will run
until 2032 and is the result of the SIPS 2020 procurement process initiated by
the Victorian Government. It will unlock up to an additional 250 MW of 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 means of ensuring grid stability. Batteries
are genuinely well suited to perform this service because they can respond in a
fraction of a second. The battery will also participate in the National
Electricity Market and support increased penetration of renewables in Victoria
through network services such as fast frequency control.
The Victorian Big Battery will help to modernise and stabilise the grid in
Victoria and will be instrumental in helping the State reach its objective of
50% renewables by 2030. Independent analysis shows that for every $1 invested
the battery will deliver more than $2 in benefits to Victorian households and
businesses. The savings that big batteries can provide to energy consumers are
now well-established, with independent reviews demonstrating that Neoen's
Hornsdale Power Reserve has delivered more than $150 million AUD in savings in
its first two years of operation.
The battery, which is targeted to be operational by the end of 2021, will also
deliver a significant economic boost to the Geelong region, creating over 80
construction jobs and 6 full time permanent jobs. Where possible, local
suppliers will be contracted, with AusNet already having sourced the project's
power transformers from Melbourne-based Wilson Transformer Company. Local
community building and education initiatives will also be supported across the
project's lifetime through a Community Benefit Fund.
Louis de Sambucy, Neoen Australia's Managing Director said: "We are delighted
to have won the SIPS contract and would like to thank AEMO and the Victorian
Government for placing their trust in us. We are looking forward to working
once again with Tesla and AusNet to deliver this world-leading battery storage
facility over the coming months. We are extremely proud to be launching a
project of this scale and innovation in support of Victoria's clean energy
The Hon Lily D'Ambrosio MP, Minister for Energy, Environment and Climate Change
said: "By securing one of the biggest batteries in the world, Victoria is
taking a decisive step away from coal-fired power and embracing new
technologies that will unlock more renewable energy than ever before."
Audrey Zibelman, AEMO's CEO, commented: "AEMO's competitive procurement and
evaluation process attracted significant interest. Neoen's solution, developed
with Tesla and AusNet Services, on a unit cost basis, was a significantly more
cost competitive and attractive market response than other recent major battery
developments in Australia."
Tony Narvaez, AusNet Services Managing Director said: "AusNet Services is proud
to be the network partner with Neoen and Tesla on this world-leading project.
Large scale energy storage is an important component in the transition to a
renewable future, while helping to maintain network stability and energy
security for Victoria."
Xavier Barbaro, Neoen's Chairman and Chief Executive Officer concluded: "The
Victorian Big Battery and the grid support services it will provide heralds a
new era for large scale energy storage in Australia. We are fiercely proud to
be at the forefront of this vital element of the energy transition. We will
continue to build on this experience to deliver world-leading solutions that
help to shape and transform the grid of the future for the benefit of industry
and consumers across Australia and around the globe."
Neoen is one of the world's leading and fastest growing independent producers
of exclusively renewable energy. With a capacity of more than 3.6 GW in
operation or under construction, Neoen is a high-growth company. Neoen is
notably active in Australia, Argentina, El Salvador, Finland, France, Ireland,
Jamaica, Mexico, Mozambique, Portugal and Zambia. In particular, Neoen operates
France's most powerful solar farm (300 MWp) in Cestas, and the world's first
big battery (150 MW storage capacity) in Hornsdale, Australia. Neoen is
targeting at least 5 GW capacity in operation or under construction by end of
2021. Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed in Compartment A
of the regulated market of Euronext Paris.