Allens has advised a consortium of five domestic and international banks on the debt financing of Fotowatio Renewable Ventures Australia's (FRV) 250MW/500MWh Gnarwarre battery energy storage system (BESS) in Victoria.
The BESS is the second asset to be added to the FRV portfolio financing platform, which Allens helped establish in 2024, following the addition of the 100MW/200MWh Terang BESS. The Australian Renewable Energy Agency (ARENA) is also providing grant funding to the BESS under its Advancing Renewables Program.
'The frictionless introduction of the Gnarwarre BESS into the portfolio is indicative of the flexibility that portfolio financing platforms offer sponsors, allowing them to leverage a portfolio of operational assets to obtain consistent, competitive terms and reduce transaction complexity and cost,' said lead Partner and Head of Project Finance, Michael Ryan.
'As renewables increasingly become a mature asset class, we continue to see developers aggregate assets under a single common debt platform to achieve revenue diversification, offer greater flexibility in managing individual projects and future growth, and mitigate against the underperformance of single assets.'
This transaction builds on Allens extensive expertise in renewable energy portfolio financings, having advised on recent transactions for clients including Neoen, Global Power Generation Australia, CWP Renewables, ACEN Australia, CleanPeak and Atmos Renewables, and battery project financings, with the firm having advised on the Orana BESS, Waratah Super BESS, Templers BESS, Koorangie Energy Storage System, Hazelwood BESS, Bouldercombe Battery Project and Supernode BESS.
