Victoria Fast-Tracks Major Solar, Battery Buildout

• Victoria fast-tracks Meadow Creek solar-plus-storage and Hazelwood’s Tramway Road BESS, energizing 140,000 homes annually and supporting 104,000 at peak, as DFP accelerates AUD 7.8b investment by 2027.

Victoria fast-tracked approvals for two grid-scale projects: Energy Vault’s Meadow Creek solar-plus-storage near Wangaratta (332 MW solar, 250 MW/1,000 MWh battery), expected to power about 140,000 homes annually, with evening peak coverage for roughly 85,000. The project is in the state’s northeast under the Development Facilitation Programme.

In Gippsland’s Hazelwood, Eku Energy (Macquarie’s Green Investment Group) won approval for the Tramway Road BESS (300 MW/1,200 MWh), sized to support about 104,000 homes at peak. Construction starts in 2026, spanning roughly 18 months, with commercial operations by end-2027. Since launching last year, the DFP has expedited 22 renewable projects worth over AUD 7.8 billion.

How will fast-tracked Meadow Creek and Tramway Road BESS reshape Victoria’s grid and timelines?

• Brings four-hour peak shifting at scale to both the northeast and Latrobe Valley, firming afternoon solar into the evening peak and dampening wholesale price spikes.
  
• Adds dispatchable capacity ahead of key coal exits (Yallourn by 2028, Loy Yang A by 2035), easing reliability risks during the transition period.
• Increases hosting capacity for new renewables by soaking midday surpluses, cutting curtailment on constrained 220 kV corridors in the Hume/NE region and around Gippsland.
  
• Strengthens system services: fast frequency response, contingency and regulation FCAS, and potential grid-forming capabilities that improve voltage control and system strength in weak parts of the network.
  
• Reduces reliance on gas peakers during high-demand evenings, lowering emissions intensity and fuel costs while stabilizing cap contract prices.
• Anchors Hazelwood–Gippsland as a firming hub for future offshore wind, enabling smoother integration of multi‑gigawatt offshore build targets this decade and next.
  
• Complements existing assets like the Victorian Big Battery and Hazelwood BESS, creating a more geographically diverse storage fleet that mitigates localized outages and weather risks.
• Provides a near-term reliability bridge while major transmission augmentations (e.g., VNI West and other REZ links) work through longer planning and delivery timelines.
  
• Supports Victoria’s storage targets (multi‑gigawatt by 2030/2035) with high-duration batteries aligned to evening demand, directly backing 2030–2035 renewable share goals.
  
• Fast-tracked approvals compress lead times by cutting permitting bottlenecks, pulling forward construction starts and energization relative to standard pathways.
  
• Co-location of PV and storage at Meadow Creek improves grid compliance and connection outcomes, using the battery to manage ramp rates and firm export profiles.
  
• Enhances community and jobs continuity in the Latrobe Valley by repurposing transmission access and workforce toward clean firming infrastructure.
  
• Creates stronger investment signals: bankable offtake and capacity contracts become easier when planning risk is reduced, catalyzing follow-on storage in REZs.
• Improves resilience to extreme events by providing black-start-adjacent capabilities and fast restoration support, shortening recovery times after disturbances.
  
• Lowers consumers’ exposure to negative daytime prices and steep evening ramps, smoothing bills via arbitrage and ancillary service revenues that reduce overall system costs.