The Australian Energy Market Operator (AEMO) has completed the System Integrity Protection Scheme (SIPS) procurement process on behalf of the Victorian Government. The successful tenderer is global renewable energy producer, Neoen.
Under the contract, AEMO will reserve 250 megawatts (MW) from Neoen’s 300 MW battery to operate in a control scheme to increase the capability of the Victoria to New South Wales Interconnector (VNI) and respond to unexpected network outages in Victoria from November 2021.
AEMO Managing Director and CEO, Audrey Zibelman, said: “AEMO’s competitive procurement and evaluation process attracted significant interest and a positive outcome for Victorians.
“Neoen’s solution, developed with Tesla and AusNet Services, on a unit cost basis, was a significantly more cost competitive and attractive market response than other major battery developments in Australia,” Ms Zibelman said.
In the event of an unexpected network outage between November to March, the battery will automatically discharge energy within seconds, ramping to full output of 250 MW. This will allow AEMO time to safely optimise interconnector flows and dispatch other generation and storage within Victoria to keep the system stable and secure.
Neoen Australia’s Managing Director, Louis de Sambucy, said: “We are delighted to have won the SIPS contract and would like to thank AEMO and the Victorian Government for placing their trust in us.
“We are looking forward to working once again with Tesla and AusNet to deliver this world-leading battery storage facility over the coming months. We are extremely proud to be launching a project of this scale and innovation in support of Victoria’s clean energy transition.”
Minister for Energy, Environment and Climate Change, The Hon Lily D’Ambrosio MP, said: “The big battery will help protect our network in summer, create jobs and drive down energy prices – as well as supporting our economic recovery from the coronavirus pandemic.
“Victoria is embracing new technologies that will unlock more renewable energy projects than ever before –delivering clean, cheap, reliable power to all Victorians.”