Tesla to feature in Australia's biggest ever battery project

“We’re building critical energy projects under the SEC— investing in our grid so household bills go down for every Victorian with cheaper and more reliable renewable energy across the state,” said Jacinta Allan, Premier of Victoria, in a statement.

This substantial investment is a key component of the SEC's broader strategy, allocating an initial $1 billion towards constructing 4.5 gigawatts of new power through renewable energy and storage projects. The MREH is expected to play a vital role in supplying 100% renewable electricity to SEC customers, starting with the Victorian Government's electricity requirements from 2025.

A gigantic leap in energy storage

Tesla, a trailblazer in electric vehicles and renewable energy solutions, has secured a monumental Megapack order for the MREH, with the company to provide 444 fully integrated Tesla Megapack Battery Energy Storage Systems (BESS) for the project— its biggest contract in Australia, reported Renew Economy. 

With three battery systems totalling 600 megawatts and a capacity of 1.6 gigawatt hours, the Hub, located just outside Melbourne, is set to become one of the largest battery systems globally. SEC's latest announcement underscores an increasing reliance on Tesla for large-scale energy storage projects ever since the “Big Tesla Battery” project in South Australia.

Towards a sustainable future

Equis Development, the renewable energy developer at the helm of the MREH project, has shed light on the intricacies of the hub. 

Construction will unfold in phases, with the first phase incorporating three independent batteries, each contributing to the monumental 600-megawatt battery power and 1,600 megawatt-hours of storage, enough to power 200,000 homes during peak evening consumption.

Phase 1 of the project, valued at over $1 billion, has received a significant equity boost from the SEC's $245 million investment. Equis has outlined plans for additional capacity, considering longer-term storage solutions of up to 12 hours, possibly involving flow battery technologies.

“The SEC has proven to be a commercial and valuable partner, adding immediate value to MREH and securing a rapid, cost-effective construction program,” Equis founder and managing director, David Russell, told Renew Economy.

Beyond a significant step in Victoria’s transition to renewable energy, the MREH project is expected to have substantial socio-economic impacts. Construction of the $1 billion storage facility is anticipated to create more than 155 jobs, including apprentice and trainee roles, with completion targeted for late 2025. 

The MREH is expected to store power generated from wind and the sun to meet Victoria’s growing power needs.