Allens has advised BNP Paribas, DNB and CBA on the project financing of Edify's Koorangie Energy Storage System (KESS) in North West Victoria.
Development of the 185 MW / 370 MWh KESS represents a major step towards reducing reliance on coal and gas generators to provide system strength for the Victorian grid. It is expected to increase the renewable hosting capacity of the Murray River Renewable Energy Zone by up to 300MW.
The project financing was underpinned by strong contracted revenues. KESS was awarded a 20-year support agreement with AEMO to provide system strength services in the West Murray Zone, in additional to a long term off take agreement with Shell Energy.
ICA Partners worked with Edify on the financing as well as an equity sale process, with completion of the equity sell-down to asset manager Sosteneo Infrastrucure Partners occurring concurrently with financial close.
'We are pleased to have acted for the lenders on the financing of this key energy asset. Australia is a global leader in battery energy storage capacity, and as this technology improves and associated costs fall, we expect to see an increasing number of battery energy storage systems being project financed,' said partner Scott McCoy.
