The Australian Renewable Energy Agency (Arena) has agreed to provide A$25m ($19.3m) funding for two large-scale grid connected battery projects in Victoria.

The projects will also receive A$25m ($19.3m) in funding from the government of Victoria.

Combined, the two battery projects will deliver 55MW of power and will be capable of providing nearly 80MWh of energy storage capacity.

It is reported that the lithium-ion batteries will be located at the Gannawarra solar farm near Kerang and in Warrenheip, Ballarat.

Apart from supporting future renewable generation, the projects will also help ease constraints on transmission lines in Western Victoria that currently curtail the output of existing wind and solar farms.

Arena CEO Ivor Frischknecht said: “Arena is excited to be demonstrating the capabilities that these new batteries will provide in securing reliable electricity for western Victoria and to facilitate the Victoria’s transition to renewable energy.

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“Battery storage will play a crucial role in the future energy mix, alongside other forms of storage and in conjunction with variable renewables and demand management.”

A consortia led by Spotless Sustainability Services will receive A$25m ($19.3m) for the construction of a 30MW/30MWh grid connected battery located at the Ballarat terminal station.

It is noted that battery for the storage system will be supplied by Fluence and owned by AusNet.

The remaining A$25m ($19.3m) will be used for funding a second battery at Gannawarra near Kerang, Victoria.

It will be a 25MW/50MWh battery, which will be co-located and integrated with the 60MW Gannawarra Solar Farm.

Edify Energy and its partner Wirsol will own the battery, while Telsa will be the supplier.

Under long-term offtake agreements, EnergyAustralia will operate both the batteries.

Construction is scheduled to begin this month, with both batteries expected to be commissioned later this year.