Neoen Completes Financing for 300 MW Victorian Big Battery in Australia

Mar 1, 2021 06:53 PM ET
  • Neoen has introduced that it has attained financial close on the Victorian Big Battery, a 300 MW/ 450 MWh battery storage space center in Victoria

Neoen has actually introduced that it has achieved economic close on the Victorian Big Battery, a 300 MW/ 450 MWh battery storage space center located near Geelong, in Victoria. The project will be supplied in partnership with Tesla as well as network companion AusNet Provider.

Had and operated by Neoen, the Victorian Big Battery will certainly be one of the largest batteries in the world, giving stability to Victoria's transmission network.

Xavier Barbaro, Neoen's Chairman as well as President said "we are thrilled to be developing our 2nd big battery in Australia. The Victorian Big Battery once again demonstrates the value of cutting-edge services that Neoen is proud to be introducing. At 300 MW, it will be among the largest batteries on the planet, taking our overall capability in operation or incomplete in Australia to over 1.8 GW, as well as bringing us one step more detailed to our worldwide target of 5 GW by the end of 2021."

Financing of the Victorian Big Battery was completed simply 3 months after Neoen secured a 250 MW grid services contract with AEMO. The project will be funded by a mix of equity given by Neoen and also AUD 160 million elderly debt facility supplied by the Clean Energy Finance Corporation (CEFC), in support of the Australian Government.

Building and construction has actually already started, supplying a well-timed financial boost for the Geelong region, with the project on track to be provided prior to the following Australian summer.

The System Integrity Protection Scheme (SIPS) contract will run until 2032, unlocking as much as 250 MW of additional peak capability on the existing Victoria to New South Wales Interconnector (VNI) over the next years of Australian summers. Under the agreement, the battery will give an automatic response in case of an unexpected network failure, providing AEMO with an added resource to ensure grid stability.

Energy storage is a priority innovation under the Australian Federal Government's Modern technology Investment Roadmap, as an enabler of economical and trusted low exhaust electrical energy. The Victorian Big Battery will certainly contribute to the dispatchable sources required to underpin the increasing share of renewable energy that will certainly make up Australia's future energy mix.

Ian Learmonth, Clean Energy Finance Corporation CEO claimed "the CEFC is excited to finance the Victorian Big Battery, a first-rate instance of just how utility-scale batteries can assist power networks sustain a greater infiltration of renewable energy. The battery will provide grid support services when it is under pressure, enabling authorities to increase the capacity of the VNI by up to 250 MW.

With even more power moving between the states, including during the peak summertime period, the battery will contribute to grid dependability and security. We are delighted to function together with Neoen and Tesla again, after aiding fund the growth of the Hornsdale Power Get in South Australia in 2020."