$100M battery project at Terang yet to clear final hurdle for work to begin

The ACEnergy plan to build a battery storage system using 78 shipping containers on 1.4 hectares next to the Littles Lane Terang Terminal Station was given planning approval by the state government in 2021 when the minister intervened.

The project involves housing lithium ion phosphate batteries in the shipping containers storing up to 100 megawatt of surplus electricity to dispatch at times of high demand or grid instability and hold surplus energy from the region's wind farms.

Project development manager Danny Wilkinson said while the project had been approved and incorporated into the local planning scheme, the company was still working through the connection process.

Mr Wilkinson said ACEnergy was hoping to get approval this year from the Transmission Networks Service Providers and the Australian Energy Market Operator to be able to connect to the grid.

"We're still working through the process but unfortunately the process doesn't have a defined time frame," he said.

"There's lots of projects that are being assessed.

"We're hopeful to receive connection agreement this year."

If approval does come through this year, they hope to begin construction next year - a six to nine-month project.

It is expected to create 50 jobs during construction and then five ongoing positions.

Mr Wilkinson said the 100MW project was designed to be able put two hours of power in the grid.

The average peak demand for power in Victoria last winter was almost 8000MW, according to Australian Energy Regular data.

"The sooner we can commission the project, the better it is for the grid," he said.

"I believe it will play a critical role. Every battery will that comes online. And there's many being developed."

Mr Wilkinson said he believed there were more battery projects for the region being developed "as we speak".

Origin Energy in late 2019 told its annual investor meeting it was considering building a 200MW battery at its Mortlake Power Station.

"These projects are critical," he said.

The Australian Energy Market Operator forecasts national battery storage capacity could reach 5600MW by 2036-37.

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