When completed, the energy storage system will be the largest utility-scale grid-forming battery in the National Electricity Market. Grid-forming technology is pivotal in maintaining grid stability, supporting the reliable dispatch of renewable energy. This greenfield project is located next to the 330.0 MWp Darlington Point Solar Farm, Australia’s largest operating solar farm.
Edify Energy sold a majority shareholding of the project to Federation Asset Management Pty Ltd, which will form the seed asset for its Sustainable Australian Real Asset fund. Edify Energy continues to maintain a long-term ownership interest in the project and will undertake the construction management and long-term asset management roles for the battery, aligning interests with its majority equity partners.
Sally Reid, Executive General Manager Global Client Solutions at Commonwealth Bank, said that Edify Energy and CBA have a proud history of partnering together to bring to market cutting edge technology to benefit all Australians.
"CBA is incredibly proud to support Edify Energy to build Australia’s largest grid-forming battery in the Riverina region. This project will play a key role in ensuring that NSW’s greener grid is also stable and reliable. Greening the grid is critical to Australia’s transition to net zero, and CBA is excited to support Edify and Federation in helping advance our critical infrastructure towards that goal with this project,” Ms Reid said.
Edify Energy Chief executive, John Cole said he is proud of the company’s role as a leader in Australia's frontline of innovation in the sustainable energy sector.
“We have long been believers of harnessing the full capability of technology. In this instance, we’re using the combination of the dispatchable properties of batteries with a new vintage of grid forming inverter control systems to create a credible substitution to the inherent power system support services provided by thermal synchronous sources of generators. With the widespread adoption of this technology, we’ll be removing the last bastion to any reliance on the incumbent carbon-intensive generation fleet and assist in ushering a 100% renewable future with the confidence of a stable, reliable power system.”
CBA is one of three banks participating in the transaction, which marks one of the first utility-scale battery deals supported by commercial banks in Australia, reflecting the growing sophistication of renewables financing capabilities, said Neil Fraser, CBA’s Executive Director of Natural Resources and Energy.
“Battery energy storage systems have multiple revenue streams and costs, which creates challenges in forecasting future cash flows. However, we continue to grow our capability in this space and support this technology which is crucial to the continued decarbonisation of the energy sector,” Mr Fraser said.
“We’re delighted to have supported Edify and Federation and anticipate this is one of many battery deals to come, as energy storage systems play increased importance to grid stability and firming renewable energy generation.”