New South Wales, Australia, has unveiled its latest and most substantial battery project, a 150-megawatt (MW) / 300-megawatt hour (MWh) Tesla-powered system, which is now fully operational. This remarkable energy storage facility, known as the Riverina and Darlington Point Energy Storage Systems, is situated on Wiradjuri land in the Riverina region and comprises three independent units. These units have secured contracts with Shell Energy and EnergyAustralia for the next decade.
Adjacent to Edify Energy's 275 MW (AC) Darlington Solar Farm, which was launched in 2020, this massive battery plays a pivotal role in stabilizing the grid. It utilizes Tesla's cutting-edge grid-forming inverter technology, capable of operating in a ‘virtual synchronous generator' mode, emulating the synchronized nature of traditional fossil fuel and hydropower generators.
Stephen Panizza, co-founder and head of renewable energy at Federation Asset Management, highlighted the critical role batteries play in addressing grid stability issues during the upgrade of transmission lines. As aging coal plants retire, the need for energy storage becomes increasingly urgent. Advanced grid-forming batteries like the Riverina BESS are essential for maximizing the existing grid infrastructure's capacity, facilitating the seamless integration of additional wind and solar generation into the National Electricity Market (NEM).
Edify CEO John Cole emphasized how this operational technology elevates the grid's reliability by mitigating the variable output of wind and solar sources.
The Australian Renewable Energy Agency (ARENA), which provided $6.6 million in funding for the project, anticipated that the battery would enhance system strength in a weak part of the grid, opening doors for expanded renewable energy generation.
This achievement marks the second major battery project to be commissioned in New South Wales, following the Wallgrove battery in western Sydney. Big batteries are rapidly becoming integral to the Australian grid, offering essential grid services, network support, and power delivery during peak demand.
The Riverina battery project reached financial close in June of the previous year, positioning itself as one of the largest utility-scale grid-forming plants in the National Electricity Market, with a state-of-the-art energy storage system.
The largest battery in Australia, to date, is Neoen's 300 MW/450 MWh Victoria Big Battery, boasting 6,000 battery modules across 218 battery units. AGL's Torrens Island battery, with a capacity of 250 MW/250 MWh, closely follows. The original big battery, the Hornsdale Power Reserve, has now expanded to 150 MW/193 MWh.
While Edify designed and developed the battery, they sold a 90 percent stake to a finance consortium led by Federation Asset Management in June 2022. Financing was secured through a long-term syndicated debt facility involving the Commonwealth Bank, Westpac, and DNB, further supported by offtake agreements with Shell and EnergyAustralia. The New South Wales government also contributed $6.5 million to the project.
This deal positioned the Riverina battery at the heart of Federation's Sustainable Australian Real Asset fund (SARA), a dedicated Australian energy transition fund. Edify will continue to handle the long-term asset management of this significant renewable energy asset.
The Riverina BESS project was initially unveiled in May 2021 as a 100 MW/200 MWh endeavor, driven by an electricity supply agreement between Edify, Shell, and the New South Wales government. Shell's commitment to a 60 MW/120 MWh component of the Renewable Energy Support Scheme (RESS) played a crucial role in realizing this ambitious project, which serves essential facilities such as hospitals, schools, and buildings in New South Wales.
