Further reinforcing its leadership in the energy sector, Herbert Smith Freehills has advised Edify Energy on the development, project financing, and 100% equity sale of the 185 MW / 370 MWh Koorangie Energy Storage System, which will be located in Northwest Victoria, near the town of Kerang (the Project).
The Project has been developed by Edify Energy and will be supported by a 15-year battery storage services agreement with Shell Energy. The battery technology is to be supplied by Tesla, and balance of plant provided by Consolidated Power Projects. The Project was also awarded a 20-year System Support Agreement with AEMO in September 2022 for the battery’s provision of system strength services to the grid.
Commonwealth Bank of Australia, BNP Paribas and DNB Bank ASA have provided project financing to the Project. Completion of the 100% equity sale to Sosteneo Infrastructure Management (Sosteneo) occurred concurrently with financial close. Notably, the Project also marks Sosteneo’s first transaction in Australia.
The cross-practice Herbert Smith Freehills team was led by partners Elizabeth Charlesworth, Alison Dodd, Neena Aynsley, Peter Davis and Kristen Percy. They were supported by senior associates Arnica Mullins, Kimberley Lean, Julia Hollis, Michael Trent and Nicholas Gerovasilis, solicitors Stephanie Simm, Holly McNaughton, Sylvia Tran, Lachlan Taylor and Liam Annable, and graduates Shania Sharma and Maddie Prow.
Herbert Smith Freehills partner Elizabeth Charlesworth said, “We’re excited to have continued to work with Edify Energy on another significant clean energy project. Market participants continue to face challenges with grid stability and reliable green electricity supply, and this project reflects Edify Energy’s dedication and ongoing commitment to using technology to work towards creating a greener and more stable electricity grid, in addition to providing much desired system strength to the Murray River Renewable Energy Zone.”
Allens advised the lenders. DLA Piper advised Sosteneo. ICA acted as financial adviser to Edify Energy.
This deal is another example of Herbert Smith Freehills’ market-leading work in the clean energy sector. Other recent examples include our firm advising:
- The lenders on the development and project financing of the 200MW/400MWh Rangebank Battery Energy Storage Systems, located in Cranbourne West, Melbourne, Victoria.
- Advising Edify Energy in relation to the greenfield project financing for the majority sale of the 150MW/300MWh Riverina and Darlington Point BESS projects to Federation Asset Management in 2022.
- Advising CIMIC Group company Pacific Partnerships on the project financing of the 102 MWac/130MWdc Glenrowan Solar Farm in northern Victoria. Glenrowan Solar Farm is the first of the six successful projects chosen under the Second Victorian Renewable Energy Target Auction (VRET2) to achieve financial close.
- Advising Fotowatio Renewable Ventures Australia (FRV Australia) on the project financing of the Walla Walla Solar Farm, located in Walla Walla near Albury, which will one of the largest solar farms in New South Wales.