Victorian households are set to benefit from enhanced grid stability and increased renewable energy supply with the announcement of a new 400-megawatt (MW) battery project near Wodonga. The state-owned State Electricity Commission (SEC) is investing up to $43 million in the Baranduda Electrical Energy Reserve, marking a significant step in Victoria’s energy transition. Construction on the substantial 1.86 gigawatt-hour (GWh) battery is slated to commence in November 2026, with an expected operational date in late 2028.

This project represents the first public-private partnership between the Victorian Government and a superannuation fund to deliver a renewable energy project in the state, with project partners Aware Super and Birdwood. The Baranduda battery is strategically located adjacent to the Wodonga Terminal Station and the vital Victoria–New South Wales electricity interconnector, bolstering its role in regional grid resilience and inter-state power flows.

Boosting Victoria’s Energy Security and Capacity

The Baranduda Electrical Energy Reserve will feature four independent 100 MW units, providing 4.65 hours of continuous discharge. This duration makes it, for now, the longest-duration battery storage in Victoria. Its primary function will be to store surplus electricity generated during periods of high renewable output and dispatch it back into the grid when demand is high, particularly during evening peaks. This capability is projected to supply more than 200,000 Victorian homes through peak demand periods.

Minister for Energy and Resources, Jaclyn Symes, emphasised the battery’s role in the state’s broader energy strategy:

“Labor has delivered the lowest wholesale electricity prices in the country because we invest in renewables and big batteries. This big battery will be able to power more than 200,000 Victorian homes through the evening peak, helping to keep power bills down and the lights on.”

This investment aligns with Victoria’s commitment to phasing out coal-fired power stations and transitioning to a predominantly renewable energy grid. The SEC’s securing of 50 per cent of the battery’s output through a 15-year agreement underscores its direct role in ensuring future supply for government and commercial customers, with the remaining capacity available to the broader electricity market.

Economic Benefits and Grid Integration

The construction phase of the Baranduda project is anticipated to create approximately 150 jobs, with additional ongoing roles once the facility becomes operational in late 2028. Beyond direct employment, such infrastructure projects stimulate local economies and contribute to the growth of Australia’s burgeoning renewable energy sector.

The battery’s location near the Victoria-NSW interconnector is critical. Interconnectors are the backbone of the National Electricity Market (NEM), allowing states to share electricity and enhance overall grid stability. As Australia’s grid integrates more variable renewable energy, robust transmission and storage solutions become paramount. The Australian Energy Market Operator (AEMO) regularly highlights the need for significant investment in transmission and storage to manage the influx of renewables and maintain system reliability.

For households looking to enhance their own energy resilience, understanding how grid-scale projects like Baranduda contribute to overall stability is key. While large batteries stabilise the broader network, individual homeowners can also take steps to prepare for outages. Our guide on Power Outage Preparedness 2026: Your $4,350+ Australian Home Resilience Guide offers practical advice for residential readiness.

The Role of State-Owned Energy Investment

Victoria’s re-establishment of the SEC and its direct investment in projects like Baranduda signifies a shift towards greater public involvement in the energy transition. This approach aims to accelerate the deployment of critical infrastructure, ensure energy security, and potentially exert downward pressure on electricity prices. The SEC’s model seeks to leverage public capital alongside private investment to deliver large-scale renewable and storage projects that might otherwise face slower development cycles.

This investment also complements the growing trend of home battery installations and virtual power plants (VPPs) across Australia. While utility-scale batteries provide foundational grid support, distributed energy resources (DERs) like home batteries can offer flexible capacity and contribute to grid stability. Homeowners interested in participating in the energy market and earning revenue from their batteries can explore options in our article: Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026.

As Victoria continues its renewable energy journey, projects like the Baranduda Electrical Energy Reserve are essential for managing the complexities of a transforming grid, ensuring reliable power, and working towards the state’s ambitious emissions reduction targets.