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Development of largest grid-forming battery project begins in NSW
Renewable energy development and storage investment company Edify Energy has begun development of the largest approved utility-scale grid-forming battery in Australia.
Lauren Croft
Firm: Herbert Smith Freehills (Edify Energy)
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Deal: Herbert Smith Freehills has advised Edify Energy on the development, project financing and major equity sale of the largest utility-scale grid-forming battery in the National Electricity Market – the 150-megawatt/300-megawatt hour Riverina Battery Energy Storage Systems, which will be located in Darlington Point, NSW.
Value: N/A
Area: Energy, projects and infrastructure
Key players: The cross-practice Herbert Smith Freehills team was led by partners Elizabeth Charlesworth, Alison Dodd, Kristen Percy, and Neena Aynsley. They were supported by executive counsel Amelia Fleming, senior associates Arnica Mullins, Jennifer He and David Ong, solicitors Stephanie Simm and Teresa Sun, and graduate Calida Tang.
Norton Rose Fulbright advised Federation Asset Management in the transaction, and White & Case advised the lenders.
Deal significance: The project will comprise three battery energy storage partitions, each supported by its own battery storage services agreement with Shell Energy or EnergyAustralia. The battery technology will be supplied by Tesla, which will also provide operations and maintenance services.
Commonwealth Bank of Australia, Westpac Banking Corporation and DNB Bank ASA have provided project financing. In addition, the NSW government provided grant funding support to this important project.
Following the major equity sale to Federation Asset Management, Edify Energy will maintain an ownership interest in the project, and its asset management team will continue to support the construction and operational delivery of the project.
Commenting on the deal, Ms Charlesworth said: “Recent events have highlighted the urgency to decarbonise the energy sector in Australia and the challenges we face with grid stability and reliable electricity supply.
“It has been a pleasure to work with Edify Energy and help them reach financial close to deliver the largest utility scale grid-forming battery in the National Electricity Market. It demonstrates Edify Energy’s commitment to utilising technology to work towards creating a greener and more stable electricity grid.”
