Edify Energy and Sosteneo will partner to build and operate the $400 million Koorangie Energy Storage System (KESS).
The 185MW/370MWh battery storage system will be built in the Murray River region, near the renewable energy rich area of Kerang, Victoria.
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The financing deal includes a 20-year System Support Agreement with the Australian Energy Market Operator (AEMO) for the provision of system strength and is supported by a 15-year term offtake agreement with Shell Energy for the full 185MW/370MWh.
Developed and structured by Edify, the energy storage system will utilise Tesla Megapacks, equipped with grid forming inverters that operate in ‘Virtual Machine Mode’. This will allow the storage system to operate in a manner akin to a conventional generator and provide crucial system strength services to increase the renewable hosting capacity of the Murray River REZ, helping to facilitate additional clean energy generation in the region.
Edify Energy founder and CEO John Cole said, “Edify continues its march forward, developing, financing and operationalising new energy assets to increase renewable penetration and power system stability as well as delivering affordable, reliable and dispatchable clean electricity.
“We welcome Sosteneo as our equity partner and their faith in us. Edify delivers, and we look forward to bringing our third and largest BESS to market in short order. Our ecosystem of trusted partners is maturing and deepening with KESS. We are delighted to be delivering a ground breaking project with partners and stakeholders we have worked with on other assets including, Tesla, Shell Energy, Consolidated Power Projects, CBA, BNP Paribas, DNB, Gannawarra Shire Council, the Victorian Government and AEMO. Strong relationships are a cornerstone to the Edify team and are critical for an accelerated energy transition.”
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KESS is the first investment in Australia for fund manager Sosteneo following its launch in September 2023. Sosteneo was established by clean energy executives with significant experience in the Australian renewables market, with the local team including former ARENA CEO, Ivor Frischknecht, and Nick Renshaw, formerly at Natixis.
The Victorian Government is supporting the KESS project with funding of $119 million to AEMO as part of a program to strengthen the grid so it can host the new renewable generation Victoria needs to secure its energy future and tackle climate change.
