Equis Developments says it will start construction of a new big battery project in the New England region of NSW after landing a “first of its kind” debt finance package from Australian and international banks.
The 250 MW and 500 MWh Calala battery is to be built next to the Tamworth sub station in northern NSW, using Tesla megapack technology, and is being developed by energy infrastructure company Equis Australia.
One part of the battery – amounting to 100 MW and 200 MWh – has secured a long term off take agreement with SmartestEnergy, while the remainder will be a “merchant” facility, using Tesla software to trade on the open electricity market.
Equis, which is also building the 600 MW, 1,600 MWh Melbourne Renewable Energy Hub battery in Victoria – also using Tesla Megapack technology – says it is the first big battery in NSW to secure merchant debt financing in NSW.
Its $260 million of non-recourse senior debt financing was provided by Westpac, Society Generale and Sumitomo Mutsui Bank. Westpac was also involved the country’s first non recourse senior debt financing for a merchant facility, for the Bungama battery announced last month by Amp Energy.
The total cost of the Calala battery is $US328 million ($A522 million), a spokesperson said by email, which suggests it has not enjoyed some of the cost reductions cited by other battery projects in recent times.
Equis says it has been engaging with the Tamworth community – the battery will be located just over 5kms south east of the city – since 2022.
“Our experienced in-house planning and communications team are committed to thorough and transparent community engagement,” said Mahesh Reddy, the head of Equis Australia.
“This approach is reflected in our team’s ability to secure development approval for our projects at an average of 5 months which is significantly faster than the industry average.”
SmartestEnergy, a UK-based retailer that is wholly owned by Japanese industrial giant Marubeni, described it as a “watershed” moment for the company, as it is its first big battery contract and will support its growing retail business in Australia.
“This is a watershed moment for SmartestEnergy. To lead in the future energy market, you need firming assets like this. It’s no longer optional,” said Alex Uziallo , the head of origination at SmartestEnergy Australia.
See Renew Economy’s Big Battery Storage Map of Australia.
