A new project will strengthen and modernise the electricity grid in the Latrobe Valley. It aims to support more renewable energy, improve grid reliability, and help reduce energy costs.
An expression of interest process has opened for the delivery of new synchronous condensers in the Latrobe Valley.
A synchronous condenser is a large spinning machine that helps keep the electricity network stable. It allows more renewable energy from sources such as wind and solar to connect to the grid.
The technology can quickly respond to changes in the electricity network. It helps maintain a steady power supply during faults or disruptions.
The project will support the development of at least three new synchronous condensers at or near the Hazelwood terminal station in the Latrobe Valley.
The process will first invite companies to express their interest. A formal tender process is expected to follow later in the year.
The project is part of wider efforts to upgrade electricity infrastructure and support the transition to renewable energy as older coal-fired power stations close.
A separate synchronous condenser project near Ararat is also being developed. It is one of 12 grid improvement projects supported through a $480 million investment program.
The Latrobe Valley upgrades are expected to improve energy reliability, support renewable energy growth, and create new opportunities for local workers.