Melbourne renewable energy hub BESS begins commissioning as australia accelerates energy storage rollout

By Abbas Nazil
Commissioning has commenced on the Melbourne Renewable Energy Hub (MREH), a massive 600MW/1,600MWh battery energy storage system (BESS) located in Victoria, Australia.
The project marks a significant milestone in the country’s renewable energy transition, with the first two systems now integrated into the Australian Energy Market Operator’s (AEMO) Market Management System (MMS), confirming their readiness for testing and commissioning.
MREH is being developed by Singapore-based renewable energy investment firm Equis in collaboration with the State Electricity Commission (SEC), a government-owned entity in Victoria.
The hub represents one of the largest battery storage projects in the state and is expected to play a key role in enhancing energy reliability and supporting the integration of renewable energy into the grid.
Construction began in September 2024, and the full facility is expected to be operational in 2025.
Valued at approximately AU\$1 billion (US\$660 million), the Melbourne Renewable Energy Hub consists of three separate BESS units utilizing Tesla’s Megapack solution.
Tesla’s Megapack is an all-in-one lithium-ion battery system designed for grid-scale storage and includes power conversion systems, thermal management, and sophisticated controls.
The components for the hub are part of Tesla’s rapidly scaling global supply, with the company’s Megapack factory in Lathrop, California, reaching a 40GWh annual capacity by the end of 2024, and another factory of similar scale recently going live in China.
Equis initially received Commonwealth approval for the MREH project in October 2023, with environmental authorization for a higher capacity of 1.2GW/2.4GWh from Environment and Water Minister Tanya Plibersek.
The SEC’s involvement, formalized in November 2023, has been pivotal in accelerating the project’s development and aligns with Victoria’s broader strategy to unlock 4.5GW of renewable energy potential.
Grid connection works for the project were completed by Lumea, the commercial arm of Australian transmission operator Transgrid.
Meanwhile, in New South Wales, Potentia Energy—a joint venture between Enel Green Power and INPEX—has issued a notice to proceed with the Ridgey Creek BESS, a 130MW/260MWh project located near Parkes.
The project is set to begin construction later this year and is expected to be operational by early 2027.
Ridgey Creek will also feature advanced grid-forming technology, enhancing the stability of the National Electricity Market (NEM).
With an estimated investment of AU\$180 million, the project underscores the growing momentum behind large-scale energy storage in Australia.
According to Potentia Energy CEO Werther Esposito, the Ridgey Creek BESS will be instrumental in supporting grid reliability and enabling greater penetration of affordable, renewable energy for Australian homes and businesses.
Both projects reflect the country’s accelerating efforts to build energy storage infrastructure critical to its clean energy transition.