Victoria Fast-Tracks State’s Largest Battery Project, to Power up to 345,000 Homes

The $1-billion storage project could power 345,000 homes, yet critics say Labor’s transition plan risks higher bills and alienating regions.

Victorian Premier Jacinta Allan speaks at the Victorian Labor State Conference at Moonee Valley Racecourse in Moonee Ponds in Australia, on Aug. 2, 2025. AAP Image/Con Chronis

The Allan Labor Government has signed off on Victoria’s biggest-ever battery storage project—a one-gigawatt facility near Portland that promises to store enough renewable energy to power 345,000 homes at peak demand.

Pacific Green’s Portland Energy Park will include four separate 250-megawatt “battery parks” and a new terminal station linked into the state grid.

Approved under Labor’s Development Facilitation Program, the $1-billion-plus project is expected to support grid reliability and price stability as renewable generation ramps up.

Construction is projected to generate around 300 jobs, with 60 ongoing positions once operational.

The facility must still comply with strict conditions on biodiversity, bushfire safety and noise, as well as deliver local road upgrades.

Minister for Energy and Resources Lily D’Ambrosio said, “This battery will soak up cheap renewable power during the day and deliver it when demand peaks—powering 345,000 homes and slashing energy bills across the state.”

Race to Deliver Renewable Targets

Victoria has set ambitious goals: 65 percent renewable generation by 2030 and 95 percent by 2035.

To reach them, the government claims to have fast-tracked more than $6 billion in renewable projects.

Officials say those projects together could power over half a million homes annually and add storage capacity for more than 1.6 million households.

Yet progress has been uneven. While the state hit a 42 percent renewable output this year, major offshore wind projects have stumbled.

Origin and Renewable Energy Systems’ (RES) Navigator North project in Gippsland has paused participation in initial funding rounds, citing government timelines it could not meet.

Other ventures, including the $6 billion Seadragon wind farm, have collapsed entirely.

The battery push comes only a week after the government overrode local objections to greenlight a Chinese-backed mega-battery in North-East Victoria.

The move sparked anger from regional communities who claim they are being sidelined by Melbourne-driven energy decisions.

Opposition Warns of Rising Costs

The opposition argues the state government’s accelerated approach risks alienating communities while failing to address cost pressures.

Shadow Energy Minister David Davis accused Labor of “botching” the transition.

“Every Victorian saw their electricity and gas bill jump on Aug. 1, yet the government pretends its renewable zones will somehow solve the problem,” he said.

Davis also labelled Labor’s rollout of renewable energy zones “heavy-handed” and “bullying” toward regional residents opposed to large-scale developments.

Community protests have grown louder in recent months, particularly around rural siting of wind farms and batteries.

Critics say that while big storage projects are essential, the pace and scale are leaving little room for local consultation.