First of 444 Tesla Megapacks installed in Melbourne Hub

The project is one of the world’s largest bit battery projects and was approved by Australia’s federal government in October 2023. Located just outside of Melbourne, it entails three battery components that will eventually provide 1.6 GWh of energy storage.

According to the Victorian government, more than 15,000 tonnes of rock were extracted to make way for the Tesla Megapacks. This rock will be reused to build a barrier around the site and landscaped with Australian plants native to the area. More than 530 workers, apprentices and cadets completed earthworks and other critical infrastructure to prepare the site for the installation of batteries that has now begun.

While Tesla is supplying its Megapack Batteries for the project, Samsung will supply the remaining components of the storage system. The project is located on a 90-hectare site in Plumpton, 25 kilometres northwest of Melbourne. According to earlier announcements Equis has said that other technologies such as redox flow batteries could be used to double the output in the next two phases.

According to the Victorian state government, the big battery project will store enough energy to power up to 200,000 homes during peak periods. The government said the Hub will start storing excess rooftop solar and surplus energy from the grid. It will be connected to three Renewable Energy Zones allowing more energy to connect to the grid.

The Victorian renewable energy zones (VREZs). Image: Victorian Government

Minister for the State Electricity Commission Lily D’Ambrosiosaid, “The SEC’s big battery will deliver 23 per cent of Victoria’s 2030 storage capacity target – with large amounts of solar and wind coming online, batteries will be able to suck it up and dispatch it when needed.”

The project was originally developed by Syncline Energy, which first unveiled the plan in 2021, calling it the Melton Renewable Energy Hub. It was rebranded by Equis when it took full ownership of the project in 2022. At the time, it was reported that Equis had committed $1.9 billion (USD 1.22 billion) to the project backed by the Abu Dhabi Investment Authority and the Ontario Teachers Pension Plan Board. The SEC made its $245 million investment to co-own the project in November 2023, enabling construction to begin and supporting one of the project’s battery components to double in size.

The Melbourne Renewable Energy Hub is the first project of the SEC’s total investment of AUD 1 billion (approx. EUR 608 million USD 672 million) towards building 4.5 GW of new power through renewable energy and storage projects to accelerate the energy transition.

In August 2024, Equis revealed it is developing a portfolio of 17 battery projects with a combined capacity of 4.4 GW across Australia.

The SEC says the Melbourne Renewable Energy Hub is critical to meeting the state’s demand for energy storage and the government’s target of at least 2.6 gigawatts of energy storage capacity by 2030 and 6.3 gigawatts by 2035. Victoria is scheduled to transition off fossil fuels to 95% renewable energy generation by 2035.