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 MW during peak periods.

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.

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

"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 Kylie Diwell, Partner, MinterEllison.

"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 project is being delivered by Victorian Big Battery Pty Limited.

The MinterEllison team was led by Kylie Diwell (Partner) and Fiona Lewis (Special Counsel), with support from Peter Block (Partner), Warwick Lindsay (Special Counsel), Darshini Nanthakumar (Special Counsel), Ingrid Zhang (Associate) and Ryan Gale (Lawyer).