Neoen has reached the financial close of the Victorian Big Battery project, a 300MW/450MWh energy storage facility in Australia.
The company provided equity for the Victorian Big Battery project while the Clean Energy Finance Corporation (CEFC) offered a senior debt facility of $125m (A$160m) on behalf of the Australian government.
Neoen said that construction works at the site have already started. Tesla and network partner AusNet Services will collaborate on the project.
CEFC CEO Ian Learmonth said: “The CEFC is excited to finance the Victorian Big Battery, a world-class example of how utility-scale batteries can help electricity networks support a higher penetration of renewable energy.
“With more power flowing between the states, including during the peak summer season, the battery will contribute to grid reliability and security. We are delighted to work alongside Neoen and Tesla again, after helping finance the expansion of the Hornsdale Power Reserve in South Australia in 2020.”
Neoen Australia managing director Louis de Sambucy said: “With the help and hard work of our partners, Tesla and AusNet Services, we are on track to deliver this project before the next Australian summer and are looking forward to playing our part in helping Victoria reach its ambitious target of 50% renewable energy by 2030.”
Neoen completed the financing for the battery project three months after it secured a 250MW grid services contract from the Australian Energy Market Operator (AEMO).
Set to run until 2032, the System Integrity Protection Scheme contract will provide up to 250MW of additional peak capacity to the Victoria to New South Wales Interconnector over the next decade.
During unexpected network outages, the battery will automatically respond, giving AEMO additional grid stability.
Neoen owns the battery storage facility and claims it will be the world’s largest battery storage project.