A switch has been flicked on Australia’s largest privately funded utility-scale battery at the site of a retired coal power plant in Victoria's east.
The Hazelwood battery storage system was opened by Victorian Energy Minister Lily D’Ambrosio at the former Latrobe Valley power station site on Wednesday.
The battery, which is expected to have a lifespan of 20 years, has been built next to the former brown coal generator decommissioned in early 2017.
It can store 150 megawatts (MW) of power, the equivalent of an hour of energy generation from the rooftop solar systems of 30,000 Victorian homes.
The project has been jointly funded and developed by French energy giant Engie and newly formed big battery subsidiary Eku Energy.
It was built by global company Fluence.
Three coal-fired power plants remain in operation in Victoria, but they are expected to close in coming years as the state pursues its renewable energy and emissions reduction targets.
The new battery has the capacity to power about 75,000 homes for one hour during the evening peak and is the second largest in the state behind a 300MW battery outside of Geelong.
"This battery marks an important step forward in the transformation of this historic site from a former coal-fired power station to an active participant in Victoria's renewable energy system future," Ms D'Ambrosio told guests.
"The Latrobe Valley will continue to play an integral part in the energy mix for our state."
Engie Australia and New Zealand chief executive Rik De Buyserie said the wider context of the storage system's location could not be ignored.
"Strategically and commercially this is the perfect site for better access to the transmission yard and its unused capacity makes the location ideal," he said.
The nearby coal-fired power plant at Yallourn is scheduled to close in 2028, with Alinta Energy-owned Loy Yang B expected to follow by 2035.
Energy Australia's Yallourn station generates 22 per cent of Victoria's energy needs each year, slightly more than Loy Yang B.
The Hazelwood battery will increase grid stability by sending out extra electricity into the grid in times of peak demand, or storing electricity that is not being used in times of low demand.
Ms D’Ambrosio said the additional grid capacity would put downward pressure on power bills but acknowledged more batteries were needed to reach the state's goal of creating 2.6 gigawatts of renewable energy storage by 2030.
"We've done significant work around what our storage needs will be to ensure that we can continue to deliver on those targets," she said.
Asked whether renewable projects would be able to replace positions lost from the closure of Yallourn and Loy Yang B, Ms D’Ambrosio pointed to the government's commitment to create 59,000 jobs through the revival of state electricity commission.
"There will be new different jobs," she said.
Transferring the skills, capturing the opportunities from the local community was important, she said.
