Construction of the Melbourne Renewable Energy Hub is well underway – and it’s set to play a key part in securing the state’s electricity grid as coal-fired power stations retire.
Australia’s energy system is in the midst of a profound transformation – and the sector must not only deliver enough new clean energy infrastructure to meet our net-zero goals, but in doing so ensure a reliable, affordable electricity supply.
While the Federal Government has pledged to generate 82 per cent of the country’s electricity from renewable sources by 2030, Victoria has set its own target of 95 per cent by 2035 and established the government-owned State Electricity Commission (SEC) to help accelerate the state’s energy transition. The SEC has partnered with Equis Australia to deliver one of the world’s biggest batteries – the Melbourne Renewable Energy Hub (MREH).
Not only did SEC’s investment allow construction to begin immediately, it upscaled one of the project’s battery components from two to four hours. The first phase of the MREH project comprises the connection of a 600MW and 1.6GWh BESS (battery energy storage system) into the existing Sydenham Terminal Station through a new 500kV underground cable circuit. At the completion of this phase, the MREH will have sufficient battery storage to power 200,000 homes during the evening peak period. The system will soak up surplus rooftop solar and energy from the grid, charge the batteries when renewable energy is most abundant, and discharge when supplies tighten.
As Victoria’s ageing coal-fired power stations retire, this development in Melbourne’s west is set to strengthen the electricity network and safeguard the state’s power supply. The MREH will also unlock capacity for more renewable energy to help Victoria hit its 95 per cent renewable electricity target.
Equis has engaged Lumea to deliver the 500kV transmission infrastructure for the MREH. Delivered in partnership with Transgrid, this includes the design and construction of the new Plumpton Renewable Terminal Station (PRTS) and a 500kV transmission cable that links into AusNet’s existing Sydnenham Terminal Station (SYTS), allowing the MREH to connect into the National Electricity Market (NEM). Daly’s Constructions was engaged via Taihan Electric for the delivery of this cable system. Taihan Electric’s head office engineering team designed the 500kV cable system before manufacturing began at its Dangjin Cable Plant in South Korea, and also designed specialised termination structures and self-performed the jointing and termination works before testing and commissioning.
A landmark power project
The 1875m-long underground cable system connecting PRTS to SYTS is the first 500kV underground AC cable system constructed in Australia. Not only does the MREH represent a groundbreaking achievement for the country as a whole, but in delivering the first cable installation of this type in Australia – and what is also understood to be the third ever in the entire southern hemisphere – Daly’s Constructions has set a new industry benchmark.
According to the team, Daly’s Constructions is also the only construction partner in Australia to deliver high-voltage (HV) and extra-high-voltage (EHV) cable installations in Australia, spanning 11kV through to 500kV – including 22kV, 33kV, 66kV, 110kV, 132kV, 220kV, 275kV, 330kV and 400kV.
As the principal contractor for underground cable works within AusNet’s SYTS, the Daly’s team took great care to ensure that this landmark project was not only delivered on time, but in a way that ensured the safety of everyone on-site and protected the local environment.
In addition to trenching, conduit installation and installing cables, Daly’s was responsible for the construction of the joint bays, erecting the cables onto structures, producing a detailed design of termination structure foundations within SYTS and facilitating the installation of joint and terminations.
The team also conducted site investigations – including thermal resistivity survey and Geotechnical testing along the route – implemented environment and sediment controls along the cable easement, and handled the temporary works design and construction of two weatherproof scaffolds to facilitate termination works.
As the SYTS is a live 500kV terminal station, successful delivery of the works within the 500kV terminal station required Daly’s ongoing coordination with everyone involved and strict adherence to safety protocols.
Breaking down barriers
Trenching works kicked off in July 2024, but a significant amount of rock in ground presented a schedule risk for the project, and it was estimated that around 60–75 per cent of the excavation works included rock breaking in hard basalt.
To tackle these very hard ground conditions, Daly’s employed its fleet of 23t and 13t excavators and assisted with the development of an accelerated program to minimise the impact on the project’s timeline.
Daly’s deployed multiple crews to complete concurrent work fronts within the cable easement, the PRTS and the SYTS.
The trenching works were completed in January 2025, and the team wasted no time in kicking off the installation of the power, optical fibre and earthing cables.
Rising to the challenge
To meet the desired ratings, the cables were installed within conduits in a flat spaced arrangement, which were backfilled with thermally rated materials in accordance with the design.
A total of six drums of 154mm-diameter cable, each 5.3m wide and weighing 31t were needed for this landmark project, which called for a specialised approach. Daly’s designed and manufactured a new hydraulic drum stand that can handle cable drums ranging from 2.4m wide to 8m wide, 3.0–4.4m in diameter and up to 70t in total weight, with a gearbox and motor designed to hold or recover cable up to 10t.
These cable drums were transported from South Korea to Daly’s Laverton yard for storage, then the Daly’s team managed the transportation from Laverton to the project’s site – which required specialised transport with pilot vehicles, as well as oversize and overmass (OSOM) permits.
Specialised cranage had to be used to load and unload the cable drums, which required Daly’s to develop lift plans and perform geotechnical testing to establish ground bearing pressure. The Daly’s team even had to modify their caterpillars for this project to take the larger cable and their ramp roller to cater for the increased width and height of drums.
The cable installation works wrapped up in February 2025, and Daly’s began works to construct two 30t precast joint bays – which included the installation of enclosures and ancillary pits for the cable jointing works.
While two joint bays were constructed, the cables were jointed at just one, with the second joint bay to be used for future extension of the circuit to a new termination point.
Daly’s installed two 20m-long scaffolds, which were covered with weatherproof shrink wraps to ensure the termination works were not impacted by dust and moisture. These scaffolds stood at 5m deep and 11m high with four working decks and were fully equipped with power supplies and air-conditioning.
By the end of April 2025, the cable system was ready for pre-commissioning to meet the accelerated program, marking a major milestone in the delivery of this complex transmission project.
Building positive outcomes
Daly’s strong commitment to both worksite safety and cultural and environmental responsibility was put into practise at every stage of this project, which resulted in highly positive outcomes.
Not only was it completed without a single environmental breach or incident, but the team’s collaborative efforts and proactive risk management meant that there were zero lost-time incidents, and just one medically treated incident.
The team’s dedication to health and safety was evident throughout the project duration, and regular inspections, frequent joint walk-throughs, and ongoing engagement through daily, weekly and monthly meetings allowed Daly’s to foster a culture of continuous improvement and accountability.
External safety audits identified no non-conformances, reinforcing the project’s high standards of compliance and performance. The integration of all stakeholders in planning, review processes, and site activities ensured alignment, transparency and shared ownership of success.
Construction works were carried out to comply with Cultural Heritage Management Plan (CHMP) conditions and a strict environmental management framework was set out to fulfill the planning permit requirements.
These controls included mandatory CHMP induction, regular Registered Aboriginal Party (RAP) inspections, dust and noise control, establishment of a no-go zone along the cable easement and sediment control. Daly’s also established specific measures to protect the habitat of the endangered growling grass frog.
All the construction activity along the cable route was strictly confined to established easement and beyond that was a no-go zone, which was delineated with approximately 4km of temporary fencing. A 1.5km-long sediment fence was also constructed along the cable easement on identified locations, and another specific fence was constructed around the growling grass frog habitat near the land adjacent to SYTS to prevent the frogs from entering the construction area.
Pre-commissioning tests were completed in May 2025, and Daly’s Constructions Director, Mark Daly, credited the project’s success to strong teamwork with stakeholders, solid planning, and the dedication of an experienced construction crew.
Regular progress meetings and open lines of communication helped keep everyone aligned and ensured smooth coordination across key work areas – leading to a well-executed delivery of this vital piece of renewable energy infrastructure.
As Victoria’s energy transition powers ahead, the success of this groundbreaking project reinforces both the state’s future, and Daly’s position as a trusted partner in delivering critical energy projects across Australia.
For more information, visit dalysconstructions.com.au
