Equis Development Pte Ltd (Equis) and Victoria’s government-owned SEC have financially closed and
commenced construcion of Phase 1 of the Melbourne Renewable Energy Hub
(MREH Phase 1).
MREH Phase 1 has been expanded to three independent projects of 200MW with a total capacity of
600MW/1600MWh and will involve an investment of over $1 billion. With the SEC’s equity
investment of $245 million, Equis expanded its equity investment to over $510 million in MREH
Phase 1.
“The SEC has proven to be a commercial and valuable partner, adding immediate value to MREH and
ensuring a rapid, cost-effective construction program. The result will be one of the largest battery
energy storage projects in the world. It will begin enhancing Victoria’s grid and power price stability
by the end of 2025” stated Equis founder and Managing Director, David Russell.
MREH Phase 1 has three batery stages, two bateries each comprising 400MWh of 2-hour storage
capacity, which will be owned 70% by Equis and 30% by the SEC and one batery comprising
800MWh of four-hour storage capacity which will be owned 51% by Equis and 49% by the SEC. The
200MW/800MWh batery will be subject to a SEC offtake agreement for 100% of its capacity,
allowing the SEC to directly ensure firming for SEC solar and wind projects.
“The unique scale and structure of MREH Phase 1 has allowed for a rapid response to the SEC’s
capacity requirements and ability to directly firm its own renewable energy generation load whilst
also ensuring 400MW of merchant capacity capable of rapidly responding to expected and
unexpected events which impact power prices and the stable supply of power within the state.”,
noted David Russell.
MREH Phase 1 contracted with Tesla to provide 444 fully integrated Tesla Megapack Batery Energy
Storage Systems (BESS), AusNet and Lumea to provide the connecting transmission infrastructure
and a joint venture between Samsung C&T and Genus Plus Group to undertake the engineering,
procurement and construction of balance of plant of the project.
“The project will be delivered by trusted, creditworthy counterparties with a strong record track of
completing projects on time and on budget in Australia” noted David Russell.
The joint ownership of MREH Phase 1 will allow Victorians to financially benefit from the operations
of critical renewable energy infrastructure, whilst also ensuring the project supports jobs and local
content.
“The investment is a huge step forward in increasing Victoria’s renewable storage capacity – which is
critical to meeting our nation leading targets of 95 per cent renewable energy generation by 2035,”
said Minister for the State Electricity Commission, Lily D’Ambrosio.
As a “Project of State Significance”, MREH has secured land and approvals for 1,200MW of which
600MW has commenced construction through MREH Phase 1. The remaining 600MW is currently
being developed with longer term storage solutions of up to 12 hours. MREH Phase 1 and 2 will be
connected into the National Electricity Market’s high voltage 500kV transmission system, allowing a
volume of electricity to be rapidly dispatched that is unmatched by other batery storage systems
