Australian renewable energy developer Edify Energy has secured project financing for a 150MW battery energy storage system (BESS) in New South Wales, Australia.
The financing is being provided by the Commonwealth Bank of Australia (CBA), Westpac, and DNB.
Edify Energy and technology supplier Tesla are set to complete the projects in stages during the first half of 2023.
The plant will be partitioned into three separate battery energy storage systems (BESS):
- 60MW/120MWh Riverina Energy Storage System 1 (RESS 1)
- 65MW/130MWh Riverina Energy Storage System 2 (RESS 2)
- 25MW/50MWh Darlington Point Energy Storage System (DPESS)
Designed and developed by Edify, these energy storage systems using Tesla Megapacks equipped with grid-forming inverters that operate in ‘virtual synchronous generator’ mode.
This will allow the storage system to operate in a manner akin to a conventional generator and help facilitate the connection of future clean energy power plants in the region.
John Cole, Edify Chief executive, said: “We have long been believers of harnessing the full capability of power electronics and preparing for a 100% renewables-based grid, and it is exciting for Edify to be delivering another ‘first in market’ facility.”
Edify negotiated an agreement with Federation Asset Management to acquire a majority shareholding of the project as the seed asset for its Sustainable Australian Real Asset fund.
Edify continues to maintain a long-term ownership interest in the project and will undertake the construction management and long-term asset management roles for the batteries.
Stephen Panizza, co-founder and head of renewable energy at Federation, said: “Energy storage will be a cornerstone of a decarbonised electricity grid. Federation is delighted to partner with Edify to deliver the state-of-the-art Riverina energy storage systems.”
Anthony Miller, chief executive, Westpac Institutional Bank, said: “Clean energy technologies, such as utility scale batteries, have a critical role in ensuring grid stability as Australia transitions to greater renewable energy and a low carbon energy future.
“Edify and Federation Asset Management’s strong track record with these projects, and the long-term offtake agreements Edify negotiated, make this an attractive and credible financing opportunity and Westpac is pleased to be a part of it.”
Edify negotiated long-term off-take agreements with both Shell Energy and EnergyAustralia for the projects.
Shell Energy will gain access to operational rights over the 60MW / 120MWh RESS 1 partition of the battery.
EnergyAustralia will gain access to operational rights over the RESS 2 and DPESS partitions for a combined 90MW / 180MWh.
Image: An artist’s impression of the new Riverina battery storage plant (credit: Edify)
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