Victorian Big Battery boosts energy supply while modernising the grid
Neoen battery backs clean energy transition
The 300 MW capacity Victorian Big Battery near Geelong is one of the largest energy storage facilities in the world. Operating since late 2021, the battery has helped modernise Victoria’s electricity grid, supporting additional renewable energy generation and assisting to manage power supply reliability.
$160m
CEFC finance
Instant
response capability
$220m
benefits
We are convinced that large-scale battery storage is a vital element of the energy transition, and we are proud of our dynamic leadership role in this sector. We will continue to build on our experience to deliver world-leading solutions that help to shape and transform the grid of the future, for the benefit of industry and consumers across Australia and around the globe.Xavier BarbaroChairman and CEO, Neoen
Our investment
The CEFC invested $160 million to finance the design, construction and operation of the Victorian Big Battery (VBB).
The VBB was built in less than a year and commenced operations in December 2021. At that time, the storage facility next to Moorabool Terminal Station in Geelong, was the largest lithium-ion battery in the southern hemisphere. The CEFC finance was repaid in August 2025.
Neoen, one of the world’s leading independent producers of exclusively renewable energy, developed and operates the VBB which consists of 212 Tesla MegaPack storage units with a capacity of 300 MW/450 MWh.
The battery can store enough energy in reserve to power over 1 million Victorian homes for half an hour. It can help reduce costs for energy consumers through enabling more renewable energy, allowing more power to flow into Victoria and helping to avoid blackouts and their associated costs.
The CEFC, which first invested in utility scale batteries with a commitment to the Neoen Hornsdale Power Reserve expansion in 2020, has continued commitments to support the development of utility scale battery capacity across Australia, recognising the important role a fleet of rapid-response storage assets can play in a balanced grid of the future. Learn more about our investments in energy storage.
our impact
Modernising the grid
The Victorian Big Battery is a world-class example of how utility scale batteries can help electricity networks support a higher penetration of renewable energy, providing dispatchable resources to underpin the increasing share of clean energy expected to power Australia in years to come.
Neoen has signed a System Integrity Protection Scheme (SIPS) contract with the Australian Energy Market Operator (AEMO). The scheme unlocks up to 250 MW of additional peak capacity on the existing Victoria to New South Wales Interconnector. Under the contract, the battery provides an automatic instant response in the event of an unexpected network outage, providing AEMO with additional means of ensuring grid stability. The battery also participates in the National Electricity Market and supports increased penetration of renewables in the Victorian electricity supply through network services such as fast frequency control.
PWC analysis1 found that the SIPS process would deliver benefits of more than $220 million to Victorian consumers in the next 11 years, including savings on power bills. If gross savings and AEMO costs for the battery are passed on to consumers, the Portland aluminium smelter would save about $1 million a year on its electricity bills, while the average Victorian industrial consumer could save about $280,000 a year.
Neoen reported that independent analysis predicted that for every $1 invested, the VBB was expected to deliver more than $2 in benefits to Victorian households and businesses.
Benefiting the community
Construction of the VBB brought a significant economic boost to the Geelong region through the COVID-19 pandemic lockdown period, creating more than 150 construction jobs and six full-time permanent positions. Community initiatives are supported through a Community Benefit Fund during the battery’s lifetime. Neoen has an annual commitment of $25,000 under the VBB benefit-sharing program. This is currently focused on funding two education initiatives: one for primary school students and another at the tertiary-level.2
1 SIPS 2020 Validation business case for Victorian SIPS service by PWC, November 2020
2 Victorian Big Battery website Sourced 2025
