Deal: MinterEllison has advised the Department of Environment, Land, Water and Planning on a grid-scale battery project to improve electricity supply and increase power to the state’s energy grid. 

Value: Undisclosed.

Area: Energy and resources.

Key players: The transaction was led by MinterEllison partner Kylie Diwell.

Deal significance: The 300 megawatt/377-megawatt-hour battery will be the largest lithium-ion battery in the southern hemisphere.

The battery will provide a system integrity protection scheme (SIPS) thermal service to the Australian Energy Market Operator. This will increase the import capacity of the Victoria-NSW electricity interconnector by up to 250 megawatt during peak periods.

MinterEllison assisted the state with its commercial and regulatory implementation of the project.

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“We are proud to have helped the Victorian Government on such a cutting edge electricity project, that will help ensure the future reliability of electricity supply for Victorians,” said Ms Diwell.

“Not only was this project rapidly and effectively implemented during a global pandemic, it represents overall value for money for Victorian electricity consumers. The project required us to bring together our deep understanding of the electricity regulatory environment, extensive energy project experience and comprehensive understanding of both the Victorian government’s unique operating environment and AEMO’s role in the electricity industry.”

The department requested the Australian Energy Market Operator (AEMO) to procure the SIPS thermal service. The SIPS thermal service is an alternative to constructing a physical transmission network. It also sped up a usual lengthy go-to-market process.

The battery’s excess capacity not reserved for the SIPS service is able to be used in the National Electricity Market on a merchant basis.