Major battery energy storage system proposed for Shepparton

Councillors have confirmed they were briefed by the project proponent, Avenis Energy Pty Ltd, which says the system will store electricity generated locally and help stabilise the grid.

The BESS will be privately funded and the estimated construction cost will be in excess of $500 million.

The project, located about 5km northeast of Shepparton on private land next to the AusNet substation, would have a capacity of 480MW and be able to store enough energy to power homes during peak evening demand for up to four hours.

“We chose this location because it’s right next to the substation,” Avenis Energy managing director of development Simon Kerrison said.

“That means the battery can import and export electricity directly, helping meet local energy needs when it’s needed most.”

In layman’s terms, a BESS is essentially a giant battery.

It stores electricity when demand is low — for example, during the day when solar farms north of Shepparton are generating excess power — and releases it during peak periods, such as in the evening when customers are using more energy.

“During the day, the battery will charge using solar and wind power that’s being exported into the grid,” Mr Kerrison said.

“Then in the evening, it will release that power back to the network so local households and businesses have a reliable supply.”

While the project primarily benefits Shepparton and surrounding communities, any surplus electricity will also feed into the wider Victorian grid.

Construction is expected to create between 120 and 180 jobs, with a strong focus on employing local contractors.

Once operational, the BESS will create four full-time roles for maintenance over its estimated 50-year lifespan.

“We’re committed to using as many local contractors as possible, from earthworks to equipment suppliers,” Mr Kerrison said.

“This project isn’t just about energy — it’s about providing a boost to the local economy and supporting small businesses in the region.”

Avenis Energy plans to lodge its development application with the Department of Transport and Planning by the end of 2025, with construction expected to start in 2027.

Detailed studies are under way to ensure the project won’t impact local wildlife, cultural heritage sites or the surrounding landscape.

“We’re working closely with the CFA and other stakeholders to design the project with fire safety and noise mitigation measures in place,” Mr Kerrison said.

“In the very unlikely event of an incident, the system is designed to shut down so any issue remains contained on site.”

The BESS represents a significant step for Shepparton in the state’s transition to cleaner energy.

While it isn’t classified as a renewable energy project itself, it will store and distribute power generated by local solar farms and rooftop systems.

“Projects like this improve energy security for the region and make the most of the electricity we’re already generating locally,” Mr Kerrison said.