Powercor gains licence permitting larger solar PV, wind and energy storage projects in Victoria, Australia

Powercor, an electricity distribution company, has recently obtained a new transmission license in Victoria, Australia. This license enables Powercor to establish connections for large-scale solar PV, wind power generation, and battery energy storage projects within the region. This development signifies Powercor’s commitment to facilitating the integration of renewable energy sources into the grid and supporting the transition towards a more sustainable energy future.

Issued by the Essential Services Commission, the license allows Powercor to construct additional terminal station infrastructure within its existing distribution network spanning western, central, and northern regions of Victoria. This authorization empowers Powercor to enhance its infrastructure capacity, facilitating the integration of renewable energy projects and ensuring a more robust and efficient electricity distribution system in the designated areas.

In an announcement made by Powercor on 25 September, the company disclosed its plans to include 220kV lines as part of the infrastructure development. These lines will specifically cater to customer-related projects, providing them with a seamless connection to the transmission network. This initiative by Powercor aims to streamline the process and facilitate efficient integration of customer projects into the broader energy infrastructure, ultimately fostering a more reliable and accessible transmission network.

Powercor’s envisioned projects encompass a wide range of initiatives, such as large-scale solar and wind generation, battery energy storage, data centers, as well as commercial and industrial ventures. As part of their commitment, Powercor will take ownership, operational responsibility, and maintenance duties for any required upgrades to the transmission system. This comprehensive approach ensures that the necessary infrastructure enhancements are effectively managed, enabling seamless integration of diverse projects and promoting sustainable energy development across various sectors.

Powercor’s CEO, Tim Rourke, expressed his satisfaction with the Essential Services Commission’s ruling, emphasizing that it represents a positive development for the people of Victoria. He highlighted the substantial advantages that this decision would bring to supporters of renewable energy and large-scale commercial enterprises in the region.

According to Rourke, Powercor’s venture into the transmission market will introduce increased competition, leading to reduced prices and enhanced service quality for customers.

Rourke emphasized the importance of facilitating efficient and seamless power connections for large businesses and clean energy initiatives. He stressed that this is crucial for Victoria’s competitiveness on both national and global scales, as the region strives to attract investments and generate employment opportunities. Rourke also highlighted the significant interest already expressed by major customers, indicating a clear demand for an additional provider in the market.

In recent months, Victoria has experienced a steady rise in the implementation of large-scale solar photovoltaic (PV) projects. This growth has been facilitated by the ongoing establishment of six Renewable Energy Zones (REZs) across the state.

At the beginning of this month, the Victorian government approved the construction of the 450MW Hazelwood Solar Farm. This initiative encompasses a 450MW/1,800MWh battery energy storage system (BESS) and is being spearheaded by Manthos Investments, a locally owned enterprise based in the Latrobe Valley.

The Hazelwood Solar Farm will be located in Gippsland, an area that has been recognized by the Australian Energy Market Operator (AEMO) as a highly suitable site for one of Victoria’s Renewable Energy Zones (REZs).

The Energy Update 2024 report, released by the Australian government’s Department of Climate Change, Energy, the Environment and Water (DCCEEW), highlighted a significant surge in large-scale solar photovoltaic (PV) projects over the past six years. According to the report, solar electricity generation experienced a remarkable 20-fold increase during this period. The data for 2022-23 revealed a 21% year-on-year growth in solar electricity generation, which is now 11 times higher than it was a decade ago.

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