Battery specialist Eku Energy is set to build its Williamsdale project after securing a 15 year funding and revenue share deal with the ACT government, and funding from three lenders.
The company said on Wednesday it’s reached financial close for the 250 megawatt (MW) / 500MWh Williamsdale battery energy storage system (BESS), its seventh to date to hit that milestone globally.
It secured debt funding from Westpac, Sumitomo Mitsui Banking Corporation and MUFG Bank for the project, which will cost up to $400 million, on the back of a deal struck with the ACT government.
The ACT will get half of all net revenue from the BESS, which includes participation in the wholesale National Energy Market (NEM) as well as ancillary services such a grid stability, less the charging costs of generating those revenues.
In return, Eku Energy will take the half of the revenue and receive from the territory government fixed quarterly payments for 15 years,
The BESS will have capacity to store enough renewable energy to power one-third of Canberra for two hours during peak demand periods.
The project highlights how important new revenue contracting models are for securing funding and getting BESS projects off the ground, said Eku Energy CTO Elias Saba in a statement.
Eku Energy is not the first BESS specialist this year to negotiate unusual terms to get a project across the line.
Blackrock-owned Akaysha Energy secured debt funding for two batteries in Australia, which it called the first of its kind because it was for a “portfolio” of projects. Separately, a 12-year “virtual” offtake deal helped get its four hour Orana battery in New South Wales off the ground.
The Williamsdale BESS is phase one of the ACT government’s Big Canberra Battery project. The next phase for the territory’s plans is to install batteries at nine government sites, powered by rooftop solar, two further sites and three “neighbourhood-scale” batteries.
It has already reached 100 per cent net renewables, and has a goal of achieving net zero emissions by 2045 through the electrification of homes, transport and business.
The battery will be built by contractor Consolidated Power Projects and use Tesla Energy Megapack batteries.
Construction has started and the BESS is expected to be operational in the middle of 2026.
Eku Energy is jointly owned by Macquarie Asset Management and BCI, and says it now has about 50 BESS projects in some stage of development in Australia, United Kingdom, Japan and Italy.
“At Eku Energy, we focus on innovation to find bespoke ways of integrating revenue contracts, design, project execution and capital to meet the objectives of our partners,” said Eku Energy CEO Daniel Burrows in a statement.
See also Renew Economy’s Big Battery Storage Map of Australia for more information.
