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Project

Melbourne Renewable Energy Hub

PROJECT STATUS
Announced
Melbourne Renewable Energy Hub

The Melbourne Renewable Energy Hub (MREH) will be an energy hub comprising 2.4 gigawatt hours of battery storage and a 12.5 megawatt co-located solar farm. It is located in Plumpton, Victoria, 25 kilometres northwest of Melbourne's CBD. The project will be built in two phases: 

  • Phase 1, which has a total capacity of 600 MW / 1600 MWh. MREH Phase 1 has three battery stages all with 200 MW capacities. Two of the batteries will have 400MWh of 2-hour storage capacity, and one battery will have 800MWh of four-hour storage capacity.
  • Phase 2, which is planned to have a total capacity of 600 MW / 1200 MWh. 

Phase 1 will be delivered first.

The project was orginally proposed by Syncline Energy, and was known as the Melton Renewable Energy Hub until it was acquired by Equis in November 2022. 

Key Dates

2023 Construction Commencement - Phase 1
2025 Expected Construction Completion - Stage 1

PROJECT HISTORY

Apr 2021 Victorian Government gazettes a Planning Scheme amendment.
Aug 2021 Syncline Energy unveiled plans for the project.
Nov 2022 Equis acquired a 100 per cent stake in the project.
Feb 2023 WSP was appointed the Owners Engineer for the project.
Oct 2023 Federal Government approves the MREH.
Nov 2023 Financial close and contract awards are announced for Phase 1. Construction commences on Phase 1. The media release also confirms the change in capacity of Phase 1, which now will have 1600 MWh. Previously Phase 1 had a capacity of 1200 MWh.
Sector
Energy
Procurement approach
Unconfirmed |
Location
Victoria |
Resources
Project website
Project information
Media releases
2022/11/17 Equis announces ownership
2023/02/13 WSP appointed Owners Engineer
2023/10/10 Federal Government approval
Major Contract

Melbourne Renewable Energy Hub - Phase 1

PROJECT STATUS
Under Delivery
Melbourne Renewable Energy Hub - Phase 1

Melbourne Renewable Energy Hub - Phase 1 (MREH Phase 1) is the first of the two-phase Melbourne Renewable Energy Hub development. It is jointly owned by Equis Australia and the State Electricity Commission of Victoria.

Phase 1 will comprise three batteries and have a total capacity of 600 megawatts (MW) / 1600 megawatt hours (MWh):

  • Two batteries will have a capacity of 200 MW/400 MWh and will have a two-hour storage capacity. Equis will own 70 per cent of these batteries, with the SEC having a 30 per cent ownership share. 
  • The third battery, MREH A3, will have a capacity of 200 MW/800 MWh and will have a four-hour storage capacity. Equis will own 51 per cent of this batteri, with the SEC having a 49 per cent ownership share.  

MREH A3 is subject to a 100 per cent offtake agreement with the SEC. 

Under Phase 1, transmission connections will also be constructed. Scope of works includes the design and construction of the 500kV MREH Substation and the 1.75km 500kV transmission cable that will link into the existing Sydenham's terminal station, allowing for the MREH to connect into the National Electricity Market.

Key Dates

Nov 2023 Construction Commencement
Nov 2023 Financial Close
2025 Expected Construction Completion

Financing

; ; ;
Equity Finance: The State Electricity Commission of Victoria
Equity Finance: Equis
Debt Finance: MREH Debt Financing

MREH Debt Financing is a debt syndicate comprising Export Development Canada, Societe Generale, Standard Chartered, and Westpac. MREH Debt Financing will finance the construction of the 200 MW/800 MWh battery project (MREH A3). 

Procurement

Procuring Agency: Equis
Successful Tenderer: - Provision of Battery Energy Storage Systems: Tesla - Engineering, procurement, construction, and commissioning for the Balance of Plant scope and BESS installation: Samsung C&T and Genus Plus Group Joint Venture
Related contracts:
Transmission infrastructure
Successful Tenderer - AusNet and Lumea

PROJECT HISTORY

Jul 2021 Victorian Government Department of Planning approves project and panel authority decision adopts approval of of amendments.
Oct 2023 Federal Government approves project.
Nov 2023 Financial close is reached on Phase 1 with the SEC undertaking a $245 million equity investment. Equis also expanded its equity investment of Phase 1 to $510 million. This media release also determines the equity share between the SEC and Equis across the three batteries in Phase 1. Construction commences on Phase 1.
Nov 2023 Procurement contracts are announced: - Telsa is awarded the contract for the provision of 444 fully integrated Tesla Megapack Batery Energy Storage Systems. - Three contracts (for the three batteries) for the engineering, procurement, construction, and commissioning for the Balance of Plant scope and BESS installation are awarded to a Samsung C&T and Genus Plus Group Joint Venture. The combined value of the contracts is $200 million. - Ausnet and Lumea are awarded the contracts for connecting transmission infrastructure.
Feb 2024 Financial close was reached on a $400 million in debt financing package for MREH A3. Providing the debt are a syndicate comprising Export Development Canada, Societe General, Standard Chartered, and Westpac.
Estimated Total Cost
(2024)
Sector
Energy
Procurement approach
Unconfirmed |
Location
Victoria |
Resources
Government resources
Department of Planning amendments page
Media releases
2023/11/30 Financial close reached, contract awards announced, andconstruction commencement
2024/02/12 MREH A3 debt financing raised
2023/10/10 Federal Government approves project
Project pages
Genus project page
Equis project page
Lumea project page
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