Large-scale storage is becoming increasingly important for Australia’s energy transition. This is reflected both in the launch of the Melbourne Renewable Energy Hub, one of the country’s largest battery storage facilities, and in South Australia’s ambitious plans for new long-duration storage systems with at least eight hours of capacity.
With the USD 1.1 billion project developed by Equis and the State Electricity Commission of Victoria, a massive battery storage system with a capacity of 1,600 MWh has now been connected to the grid in Melbourne. It can supply around 200,000 households during the evening peak. In South Australia, a technology-neutral tender for 8-hour storage was recently launched, with the aim of securing up to 2,300 MW of long-duration storage capacity by 2031.
Gigabattery in Melbourne Strengthens Grid Stability
Australia’s transition to renewable energy has reached a new milestone. The Melbourne Renewable Energy Hub (MREH) has been officially commissioned. With 600 MW of power and 1,600 MWh of storage capacity, the project ranks among Australia’s largest grid-scale battery storage systems. It was developed by Equis Australia in cooperation with the State Electricity Commission of Victoria (SEC).
Equis CEO David Russell considers the hub central to Victoria’s renewable energy future. “Melbourne RenewableEnergy Hub is our first project to go live in Australia and the Equis team havedelivered a world-leading project on schedule and on budget,” said Russell. He particularly highlighted the unique 500-kV underground cable developed by Equis engineers, which integrates the battery into the existing gas-insulated grid infrastructure. A total of 444 Tesla Megapacks and three 500-kV high-voltage transformers from Toshiba were installed.
According to SEC CEO Chris Miller, the SEC’s USD 245 million investment was crucial for enabling construction to begin and for expanding one of the three large batteries from two to four hours of storage capacity.
The site in western Melbourne is considered a strategic grid location. It is the only BESS in Victoria capable of supplying three renewable energy zones. Construction created more than 1,200 jobs and training opportunities, including over 70 positions for apprentices and trainees. For Russell, the project sets a benchmark in speed, quality, and community benefit for energy-storage deployment.
South Australia Launches Tender for Long-Duration Storage
South Australia has already entered the next phase toward long-duration storage. With the launch of the Firm Energy Reliability Mechanism (FERM), a tender was opened several weeks ago for up to 700 MW of storage capacity with at least eight hours of continuous storage capability. Registration for the first tender round was open until 21 November 2025, and bids had to be submitted by 28 November 2025. By 2031, the state aims to secure a total of 2,300 MW on a long-term basis.
Eligible participants for the first round were so-called Long-Duration Capacity Providers-providers able to supply at least 30 MW for eight hours and registered with the energy market operator AEMO, or seeking registration. The tender is technology-neutral, allowing battery storage, pumped hydro, or power-to-gas solutions; coal and nuclear energy are excluded.
Successful applicants will receive a 15-year FERMA contract, which stabilizes revenues through a new financial instrument and aims to reduce investment risks. In parallel, a Notice-of-Intention process is underway, governing existing capacity commitments for 2028 to 2030. Additional market-liquidity and reliability instruments are expected to be finalized in 2026.
With FERM, South Australia is positioning itself as a pioneer in long-duration storage technologies. The mechanism establishes reliable framework conditions for eight-hour storage systems, which are expected to play a central role in future grid stability and energy security.
