Cementing its leadership in energy sector transactional work, 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 150MW/300MWh Riverina Battery Energy Storage Systems, which will be located in Darlington Point, New South Wales (the Project).
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. The NSW Government also 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.
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.
Elizabeth 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.”
White & Case advised the lenders. Norton Rose Fulbright advised Federation Asset Management.
This deal is another example of Herbert Smith Freehills’ market-leading work in the clean energy sector. Other recent examples include the firm advising:
· Genex Power on the development, offtake and project financing of the 50MW/100MWh Bouldercombe Battery Energy Storage System in QLD;
· RES Australia on the development, offtake, project financing and sale of the 180MW Dulacca Wind Farm in QLD; and
· Synergy in connection with the procurement of its 100MW/200MWh battery energy storage system to be constructed in Kwinana, WA.