Equis Australia has commenced construction of a 250MW/500MWh battery energy storage system (BESS) in New South Wales after successfully securing financing for the project. The Calala BESS, located approximately 5.8 kilometers southeast of Tamworth, is slated to become fully operational by 2027.
The energy storage facility, which is expected to provide power to up to 115,000 homes during peak demand periods, will play a key role in supporting the state’s renewable energy goals. The project was backed by a $260 million non-recourse senior debt financing package from Westpac, Societe Generale, and Sumitomo Mitsui Banking Corporation, marking the first merchant BESS debt financing in New South Wales.
Calala BESS will be developed in two phases: one with 100MW/200MWh and the other with 150MW/300MWh of storage capacity. The first phase will be secured through a long-term offtake agreement with Smartest Energy, which will purchase 100% of its output. The second phase will operate as a merchant BESS and utilize Autobidder, Tesla’s real-time trading and control platform, for managing electricity trading.
Equis co-founder and managing director, David Russell, highlighted the importance of the facility: “The Calala BESS will be instrumental in supporting New South Wales’ renewable energy targets while also providing critical firming and frequency support services to the National Electricity Market, enabling greater integration of renewable energy for Australia.”
The construction of Calala BESS will generate up to 170 jobs, with seven positions anticipated during operations. The facility will be connected to the state’s electricity grid via an underground cable to the 330kV Tamworth Substation.
Equis Australia has also committed to supporting the local community. A Voluntary Planning Agreement includes a $2 million contribution to the Tamworth Regional Council, and Equis plans to continue working closely with the council throughout the project’s lifecycle to foster community engagement.
“We are excited to partner with leading companies like Tesla and Consolidated Power Projects to deliver this project and contribute to the energy transition in New South Wales,” said Mahesh Reddy, managing director and head of Equis Australia.
Equis has been engaging with the Tamworth community since 2022 to ensure the project aligns with local interests and needs.
