With Tesla, French power firm Neoen is to build a 300MW 450MWh grid battery in the Australian state of Victoria, double the size of the already huge Hornsdale Power Reserve in South Australia, also owned and operated by Neoen.

Tesla-Megapack-grid-storage-battery

Tesla Megapack right

Called the Victorian Big Battery, it will be installed in in Geelong next to Moorabool terminal station and use Tesla Megapack technology. Network company AusNet Services is also a partner in the deal. Neoen will pay for construction of the battery, as well its ongoing operation and maintenance.

It “will help reduce wholesale prices by storing cheap renewable energy when the weather makes it plentiful and discharging it into the grid when it is needed most,” according to the Victorian government “To reduce the chances of unscheduled power outages over the peak summer months, it will reserve a portion of its capacity to increase the power flow through the Victoria-New South Wales power interconnector by up to 250MW.”

250MW over the interconnector over the next decade of Australian summers is part of an associated system integrity protection scheme (SIPS) grid services contract with the Australian Energy Market Operator (AEMO).

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.

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.

Neoen claims that independent analysis has show that every $1 invested the battery will deliver more than $2 in benefits to Victorian households and businesses. It also said that independent reviews of the Hornsdale Power Reserve have demonstrated more than AU$150 million of savings in its first two years of operation.

The French company is a renewaablw energy producer with a capacity of more than 3.6GW in operation or under construction. It aims to have at least 5GW in operation or under construction by end of 2021.