Please Explain: Can Batteries Alone Secure Victoria’s Energy Future?

Victoria’s energy future is being shaped by one of the biggest questions in the power market: can renewable energy, backed by batteries, reliably replace coal-fired generation?

In a 3AW interview with Tom Elliott, Power Maintenance Managing Director Nick Halaris was asked whether Victoria could rely on solar energy feeding large-scale batteries to support the grid.

His answer was clear. Batteries have an important role, but they are not baseload generation.

For Victorian businesses, this distinction matters. Energy reliability is not just a policy issue. It affects operating costs, production planning, contract risk and long-term confidence.

“Batteries are not a baseload generator. No matter how many batteries you put in, you are not going to get the result.”

Nick Halaris, Managing Director, Power Maintenance

The context: what Nick was asked on 3AW

In the interview, Tom Elliott asked whether Victoria could rely on solar energy feeding large-scale batteries during the day, then use that stored energy to power homes and businesses at night.

Nick’s response was direct. Batteries are useful, but they are not the same as baseload generation.

That difference matters. Battery storage can help smooth demand, store excess renewable energy and support the grid during shorter periods of pressure. But it does not automatically solve the challenge of replacing large coal-fired power stations that have historically supplied reliable power around the clock.

For Victorian businesses, the issue is not whether batteries are good or bad. The issue is whether the energy system has enough reliable, dispatchable capacity to keep operating costs stable and supply secure as coal exits the grid.

Why batteries matter, but cannot carry the grid alone

Batteries are an important part of Victoria’s energy future.

They can store excess solar and wind generation, release power when demand rises, and help stabilise the grid during short periods of stress.

But batteries do not generate electricity. They store electricity that has already been produced.

That means they depend on enough generation being available in the first place. If renewable output is low, demand is high, or stored energy has already been discharged, batteries alone cannot replace the role of firm generation.

This is why Nick’s point matters. The energy transition needs storage, but it also needs reliable power that can be called on when the system needs it.

For businesses, that reliability gap can show up as higher prices, sharper volatility and greater uncertainty when planning future energy contracts.

What baseload power actually means

Baseload power refers to the steady supply of electricity needed to meet minimum demand across the grid.

It is the power the system relies on before demand spikes, weather changes or renewable output drops.

Historically, coal-fired power stations have provided much of this baseload generation in Victoria. They have supplied large volumes of electricity consistently, day and night.

As those power stations close, the replacement system needs to do more than produce energy when conditions are favourable. It needs to provide reliable supply when businesses need it most.

That is where the debate becomes more complex.

Solar and wind can produce low-cost energy when conditions are right. Batteries can store some of that energy for later use. But the grid still needs firm, dispatchable capacity that can respond when renewable generation is low or demand rises quickly.

What this means for Victorian businesses

For Victorian businesses, this is not just an energy policy debate.

It has a direct impact on cost, reliability and planning.

When the grid becomes more exposed to volatility, businesses can feel it through higher contract rates, sharper peak pricing, increased network charges and less certainty when negotiating future energy agreements.

Energy-intensive businesses are often the first to notice the pressure. Manufacturers, cold storage facilities, hospitality groups, food processors and multi-site operators all rely on stable power to keep costs predictable.

If replacement capacity does not keep pace with coal closures, the risk is not only about supply. It is also about price.

Periods of tight supply can push electricity prices higher. That can make contract timing more important and leave businesses exposed if they wait too long to review their position.

This is why energy strategy now needs to sit closer to business planning. It should not be left until a renewal notice arrives or a bill shock lands.

For many Victorian businesses, the smarter move is to understand their contract, tariff structure, demand profile and usage patterns early, before market pressure reduces their options.

“The businesses that plan early will have more options. The businesses that wait for bill shock will be negotiating from a weaker position.”

Power Maintenance

You can also call Nick and the team on 1300 700 500.