Aspiring battery storage developer GMR Energy is finally getting on with its first major battery project, announcing that “early works” have begun on a transmission link to its proposed 480MWh battery on Victoria’s Mornington Peninsula.
GMR last year took over the assets of Maoneng and its portfolio of at least six battery storage projects, but features many of the same executives.
Maoneng was a minor shareholder in the Sunraysia solar project that run into delays and cross-claims between the owners and contractors, and owned the troubled Mugga Lane solar farm that had to be sold after its bankers complained of a breach of its loan covenants.
GMR says it entered into an “early works” agreement with local transmission company AusNet to build the connection needed for the 240MW, two hour Mornington battery that it hopes to finish by the end of 2024.
The company has not reached financial close for the $330 million project, although GMR says in its media release that it intends to “fully fund” the project, presumably with the backing of its Hong Kong based private equity backer Gaw Capital Partners.
GMR also says it is in “final negotiations” with the engineering, procurement, and construction contractor to build the battery.
The Mornington battery will be located next to AusNet’s existing Tyabb substation and GMR Energy CEO and managing director, Morris Zhou, says it is in an area that is particularly exposed to fluctuations in demand.
It is is expected to operate on a mix of contracted and merchant revenue.
“The addition of the Mornington BESS, located adjacent to AusNet’s existing Tyabb substation, will also help ensure a successful transition to renewables, as it will draw and store energy from the grid during off-peak periods and dispatch energy to the grid during peak periods,” Zhou said in a statement.
“With the current supply chain issues meaning a significant bottleneck in the availability of transformers and other materials required, we have partnered with AusNet to commence early works and procure long-lead items.”
AusNet’s chief development officer, Jon D’Sylva, said the company was pleased to partner with GMR Energy to support the on-time delivery of this important piece of clean energy infrastructure.
GMR Energy has a portfolio of six battery projects, including the Gould Creek project in South Australia and three in NSW that have had lodged development approvals, and were initially proposed as part of a deal with AGL Energy announced in 2019 to deliver 200MW and 400MWh of battery capacity.
Those contracts were originally due to be delivered in 2023. It is not clear if the agreement is still in place.
“We are committed to building out these utility scale batteries on sites we have spent years to identify and develop, and to play our part in supporting Australia’s transition to renewables,” Zhou said in the company’s latest statement. Its website provides no further details as it is in “maintenance mode.”
