Energy giant AGL has announced the development of a large grid-scale battery project in the Latrobe Valley.
Development activities are now underway for a 200-megawatt battery based at Loy Yang.
The Latrobe Valley project follows the company's recent acceleration of plans for a 250MW battery at the Torrens Island Power Station in South Australia.
AGL chief executive officer and managing director Brett Redman said the company is playing a key role in modernising Australia's energy supply.
"We're proud to bring this technology to the Latrobe Valley, a community that plays such a pivotal role in Australia's energy generation," Mr Redman said.
"The limiting factor for renewable technology has always been storage and we are taking control of these limitations by turning our attention to batteries.
"We are investing in our people, our communities and the technology and in doing so driving Australia's energy transition responsibly.
"These battery projects are recharging our communities, as well as providing energy certainty for our customers."
Mr Redman said these projects align with the commitments AGL made in its Climate Statement, which set the company's target for net zero emissions by 2050.
"As Australia's largest private investor in renewable energy, we know in order to deliver for our customers and communities we now need to lead the next phase of the energy transition by developing storage and firming technologies," he said.
"Doing so means we will continue to support the energy industry as it transitions from coal to renewables and helps ensure our customers continue to have reliable and affordable energy."
Loy Yang represents the second major battery project announced in Victoria this month after a state government-backed 300MW battery was locked into be built north of Geelong.
In August this year, AGL announced plans for battery storage beside the Liddell Power Station, but said it will review this in light of the recent NSW Government energy policy announcement.