Edify Energy, an Australian renewable energy firm, and Italian infrastructure investor Sosteneo SGR Spa have joined forces to construct a substantial 185-megawatt/370-megawatt-hour battery energy storage system (BESS) in southeastern Australia.
This project, known as the Koorangie Energy Storage System (KESS), is set to be situated in the Murray River region, close to the renewable-rich area of Kerang in Victoria. It has already secured a 15-year offtake agreement for its entire capacity with Shell Energy.
Edify will lead the development and structuring of the project, while Sosteneo will retain 100% ownership, as outlined in a joint statement issued today.
Crucially, the partners have successfully closed the financing for this AUD 400 million (USD 253.7 million/EUR 240.7 million) endeavor. The project's financial support is underpinned by a long-term syndicated debt facility, arranged by CBA, DNB, and BNP Paribas. Additionally, it benefits from AUD 119 million in funding from the Victorian Government as part of its strategy to achieve 2.6 gigawatts (GW) of energy storage capacity by 2030 and 6.3 GW by 2035.
KESS will leverage Tesla Megapacks, equipped with grid-forming inverters operating in “virtual machine mode.” This advanced facility will have the capacity to power 350,000 homes for up to two hours. Furthermore, the BESS, supported by a 20-year system support agreement with the Australian Energy Market Operator (AEMO), is anticipated to serve as a new terminal station situated between Wemen and the town of Kerang.
Notably, this partnership with Edify marks the inaugural entry into the Australian market for Sosteneo, which was launched in September. The company is a collaboration between Generali Investments Holding and industry experts.