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Edify Energy completes AS$400m 370MWh Australian battery financing

October 31, 2023

Australia-headquartered Edify Energy and infrastructure investor Sosteneo have completed the AS$400m project financing for the 185MW / 370MWh Koorangie battery storage system that will be built in the Murray River region, near Kerang, Victoria.

The financing deal represents the first transaction in Australia for Sosteneo, which acquires 100 per cent ownership of the project “on behalf of clients”, a statement said.

The financing constitutes a long-term syndicated debt facility provided by Commonwealth Bank of Australia, DNB Bank and BNP Paribas.

The project has a 20-year system support agreement with the Australian Energy Market Operator (AEMO), and a 15-year term offtake agreement with Shell Energy for the full 185MW / 370MWh.

Edify said the project will be capable of powering 350,000 homes for two hours.

John Cole, Edify Energy founder and CEO, said: “Edify continues its march forward, developing, financing and operationalising new energy assets to increase renewable penetration and power system stability as well as delivering affordable, reliable and dispatchable clean electricity. Edify delivers, and we look forward to bringing our third and largest battery energy storage system to market in short order.”  

Ivor Frischknecht, managing partner and CIO Asia Pacific at Sosteneo, added: “With revenues secured through long-term agreements with Shell Energy and AEMO, the project is well-aligned with our objective of delivering stable commercial returns to clients whilst making an active contribution to the decarbonisation of the energy system.”

David Guiver, vice president at Shell Energy Australia (trading & supply), said the project would “form an important part of Shell Energy’s growing battery portfolio, helping us support a more resilient power system in Victoria and optimise supply and costs for our customers in a transitioning energy market.”

Deborah Leerhsen, executive general manager of global institutional banking coverage at Commonwealth Bank, commented: “As Australia transitions to greener, renewable power sources, large-scale storage will expedite and enable the transition. We are thrilled to support Edify and Sosteneo to build the Koorangie Energy Storage System in North West Victoria.”