BW ESS has completed the acquisition of the Yanco battery energy storage system (Yanco BESS), a 250MW/1GWh project in Riverina, New South Wales, from ACEnergy, an Australia-based renewable energy developer.

The deal will see BW ESS oversee construction and long-term operations of the large-scale battery, with commercial operations scheduled to begin in 2028.

Once operational, Yanco BESS will connect to the Yanco 132kV substation and is designed to provide firming capacity, energy arbitrage, and system security services to the National Electricity Market (NEM).

The facility is expected to be able to supply electricity to around 430,000 homes for four hours.

ACEnergy developed the Yanco BESS from early development through to ready-to-build status, having secured land, planning approval, grid connection, and contracts needed for the project.

BW ESS will now take over responsibility for the construction and management of the project, also continuing community and local stakeholder engagement started by ACEnergy.

BW ESS executive director Andy Hadland said: “We’re pleased to welcome Yanco BESS to BW ESS’s growing Australian portfolio.

“As a long-term owner and operator of energy-storage assets, our priority is to progress the project responsibly, establish strong local relationships and deliver enduring value for the electricity system.”

CATL has been selected as system integrator for the project, and ACLE Services will serve as balance of plant (BoP) contractor.

Both companies will also provide long-term operations and maintenance services for the battery installation.

Construction of the Yanco BESS is set to start later this year.

Long-term revenue for the facility is expected to be supported by a capacity swap agreement, providing contracted cashflow for the project.

Yanco BESS is the fifth large-scale battery energy storage system brought to financial close by ACEnergy.

ACEnergy managing director Raymond Wang said: “Financial close on Yanco BESS is a significant milestone for ACEnergy and a strong endorsement of our platform.

“We have taken the project from origination through to ready-to-build, working closely with the local community and stakeholders along the way.”

For BW ESS, the acquisition adds to its Australian project portfolio, which currently includes projects totalling 1.3GWh in commissioning, 1GWh nearing construction, and a greenfield pipeline of approximately 2GW within the National Electricity Market.