Victoria Approves Largest Battery Project Near Portland Smelter

The Victorian government has expedited planning approvals for a substantial 1 gigawatt (GW), 2.5 gigawatt-hour (GWh) battery project located near Portland, an industrial town in the west of the state, close to its aluminium refinery.

This ambitious battery initiative, proposed by UK-based Pacific Energy, will consist of four units, each with a capacity of 250 MW and storage capabilities ranging from two to four hours. Pacific Energy is also working on a similar project in South Australia, which is currently in its initial stages.

Fast-Tracked Development

The Portland battery project has been fast-tracked under the state government’s Development Facilitation Program, which was introduced in April last year. This program guarantees a decision from the planning department within four months.

Pacific Green, which is also developing the first stage of the Limestone Coast battery in South Australia, has indicated that the Portland battery will be constructed in phases over the next three years. They have claimed it will be the largest battery in Australia, although it may be surpassed by Origin Energy’s 700 MW, 2,800 MWh Eraring project in New South Wales, which is already under construction and expected to be completed by 2027.

Strategic Location

The project is strategically situated within an industrial zone, close to the Portland Aluminium Smelter and the Portland Water Treatment Plant. This positioning will enhance energy security for key businesses and strengthen the existing electrical infrastructure.

Scott Poulter, chairman of Pacific Green, expressed enthusiasm about the project, stating, “Its scale underlines our ambition to become a leading developer in the market and to accelerate the nation’s transition to renewables through a multi-gigawatt platform.” He added that the Portland project would significantly contribute to decarbonising Australia’s energy system.

Renewable Energy Progress

The Victorian government has now fast-tracked a total of 20 renewable energy projects since the initiative began in August last year, with a combined value of approximately $6 billion. Previously, over 20% of renewable energy project applications faced delays in the state’s Civil and Administrative Tribunal, although most were eventually approved.

Victoria’s Energy Minister, Lily D’Ambrosio, highlighted the benefits of the battery project, stating, “This battery will soak up cheap renewable power during the day and deliver it when demand peaks, powering 345,000 homes and slashing energy bills across the state.”

Supporting Infrastructure

Several wind projects are currently operational or under development along the transmission line leading to Portland, which is home to the energy-intensive Portland Aluminium Smelter, currently reliant on brown coal generators from the Latrobe Valley. Nearby, there are small wind farms, alongside the proposed 605 MW Kentbruck wind project and the Southern Ocean offshore wind zone.

The approval for the Portland project follows the state’s controversial endorsement of the 500 MW, 1,000 MWh Kiewa Valley battery by Trina Solar, located near the Dederang Terminal Station in the Kiewa Valley. The Portland batteries are anticipated to be operational by 2028.

Federal Approval Process

While the Portland Energy Park is still navigating the federal EPBC process, which was classified as a controlled action a year ago, there have been indications that the process is becoming more streamlined for certain solar and battery projects since the federal election.

For instance, Edify Energy’s Nowingi 300 MW solar project and its associated 300 MW, eight-hour battery were informed in August that they would not require a controlled action under the EPBC process. This decision came after a quick assessment period, allowing the project to move forward without extensive federal environmental scrutiny.

Government Achievements

Federal Environment Minister Murray Watt highlighted the government’s achievements since re-election, stating, “The Albanese government is doing its part by approving these 100 projects [since re-election] right across the country,” with nearly 90% of these decisions made on time.

Watt noted that good design and site selection were key factors in the Nowingi project not needing to undergo the federal process. The federal government has approved a total of 43 solar farms, 22 onshore wind farms, 13 energy storage systems, and several infrastructure projects.

Future Prospects

As an eight-hour battery, Nowingi is set to be one of the largest of its kind in Australia, competing with the partially constructed Melbourne Renewable Energy Hub for the title of the biggest battery in Victoria. However, if the Portland project is completed as planned, it will surpass both in terms of capacity.

Edify Energy CEO John Cole expressed his delight at the approval of Nowingi, stating, “Nowingi represents a cornerstone in delivering a reliable, affordable, and fully renewable national electricity system, while creating regional construction jobs and investment in north-west Victoria.”