Tesla Megapacks will be powering Neoen’s upcoming 300MW energy storage project in Victoria, Australia, which will be one of the largest battery farms in the world when it’s complete. Neoen recently announced that it won a contract from the Victorian Government and the Australian Energy Market Operator (AEMO). The Clean Energy Council (CEC), which includes Neoen, Tesla, and AusNet Services, stated that the Victorian Big Battery will be operational around Summer 2021-2022.
The Victorian Big Battery’s size will stand at 300MW/450MWh. For now, the contract signed by Neoen will be for 250MW worth of batteries comprised of 3MW Tesla Megapacks. For comparison, South Australia’s Hornsdale Power Reserve, which is comprised of Tesla Powerpacks, is a 150MW/194MWh system. It should be noted that the Hornsdale installation held the title of the world’s largest energy storage system for some time.
Thrilled to announce that our Victorian Big Battery has won 250 MW contract with @VicGovAu & @AEMO_Media !👏
Incredibly proud to be working with @Tesla & network partner @AusNetServices on this world-leading project.
Join us for webinar today at 4pm https://t.co/yipr0IWqaD pic.twitter.com/KCKsSUJ6Lu
— Neoen Australia (@NEOEN_AU) November 5, 2020
According to Australia’s Clean Energy Council, Victoria’s battery would generate an estimated 85 jobs during construction and help the state accelerate its transition to renewable energy.
“The battery’s role is to participate in Victoria’s System Integrated Protection Scheme. This means that it will provide key grid support services, particularly in peak periods should there be unexpected network outages. Consumers will also benefit from low-cost power, with the battery able to store energy from clean wind and solar,” said the CEC’s Chief Executive, Kane Thornton.
Tesla Energy has been steadily gaining ground in Australia in recent years, specifically with its battery storage business. Tesla reported that its Energy division reached a record deployment of 759 MWh in Q3, and in its TSLA Q3 2020 update letter, the EV automaker shared that Gigafactory Nevada’s Megapack production volume has doubled in the last quarter. Other Tesla Energy products such as the Solar Roof are also hitting their stride.
A Clean Victorian Recovery is making great progress, with The Victorian Government announcing The Victorian Big Battery! The project will be delivered by CEC members @NEOEN_Energy,@Tesla and @AusNetServices & is expected to generate 85 new jobs.
— Clean Energy Council (@cleannrgcouncil) November 5, 2020
Tesla’s Global Head of Commercial Energy RJ Johnson talked about the Megapack’s projected growth during the last earnings call. “Q3 was a strong quarter for the Energy business, and we’re poised for continued strong growth in Energy storage and solar. Megapack is going to be a large growth segment for the business, and deployments will continue to expand rapidly as the product reaches full capacity.”
“We have more demand than supply through 2021, and we continue to ramp the product to match unprecedented demand across the globe through 2023 and beyond. Our order book is rapidly filling up through 2023 in a multiple gigawatt-hour scale. Large-scale solar plus storage is now more cost-effective than traditional fossil fuel generation in many locations across the globe. This trend will continue as we remove cost, which will further displace existing and new fossil fuel generation,” he said.
The cost for the 300MW Victoria Big Battery has not been disclosed to date.