Neoen completes financing for 300 MW Victorian Big Battery in Australia

Neoen has reached financial close on its 300 MW / 450 MWh Victorian Big Battery, one of the world’s largest battery storage projects
The Victorian Big Battery will be entirely owned by Neoen, with debt financing provided by the Clean Energy Finance Corporation (CEFC) on behalf of the Australian Government
Financing was completed three months after Neoen was awarded by the Australian Energy Market Operator (AEMO) a 250 MW grid services contract that will support the investment
The battery is on track to be operational before the next Australian summer

Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world’s leading and fastest-growing producers of exclusively renewable energy, has completed financial close on the Victorian Big Battery, a 300 MW / 450 MWh battery storage facility located near Geelong, in Victoria. The project will be delivered in collaboration with Tesla and network partner AusNet Services. Owned and operated by Neoen, the Victorian Big Battery will be one of the largest batteries in the world, providing stability to Victoria’s transmission network.

Financing of the Victorian Big Battery was completed just three months after Neoen secured a 250 MW grid services contract with AEMO. The project will be funded by a combination of equity provided by Neoen and AUD160 million senior debt facility provided by the Clean Energy Finance Corporation (CEFC), on behalf of the Australian Government.

Construction has already commenced, providing a well-timed economic boost for the Geelong region, with the project on track to be delivered before the next Australian summer. The System Integrity Protection Scheme (SIPS) contract will run until 2032, unlocking up to 250 MW of additional peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade of Australian summers.
Under the contract, the battery will provide an automatic response in the event of an unexpected network outage, providing AEMO with an additional resource to ensure grid stability.

Energy storage is a priority technology under the Australian Federal Government’s Technology Investment Roadmap, as an enabler of cost effective and reliable low emission electricity. The Victorian Big Battery will contribute to the dispatchable resources needed to underpin the increasing share of renewable energy that will make up Australia’s future energy mix.

Louis de Sambucy, Neoen Australia’s Managing Director said: “We are delighted to announce that the Victorian Big Battery has reached this important financial milestone. I would like to thank the CEFC for their renewed trust and commitment towards supporting innovative storage solutions. With the help and hard work of our partners, Tesla and AusNet Services, we are on track to deliver this project before the next Australian summer and are looking forward to playing our part in helping Victoria reach its ambitious target of 50% renewable energy by 2030.”

Ian Learmonth, Clean Energy Finance Corporation CEO said: “The CEFC is excited to finance the Victorian Big Battery, a world-class example of how utility-scale batteries can help electricity networks support a higher penetration of renewable energy. The battery will provide grid support services when it is under pressure, allowing authorities to increase the capacity of the VNI by up to 250 MW. With more power flowing between the states, including during the peak summer season, the battery will contribute to grid reliability and security. We are delighted to work alongside Neoen and Tesla again, after helping finance the expansion of the Hornsdale Power Reserve in South Australia in 2020.”

The Hon Lily D’Ambrosio MP, Victorian Minister for Energy, Environment and Climate Change said:
“The Big Battery will help protect Victoria’s energy reliability. It will create jobs and drive down energy prices, as well as supporting our economic recovery from the coronavirus pandemic.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer concluded: “We are thrilled to be building our second big battery in Australia. The Victorian Big Battery once again demonstrates the value of innovative solutions that Neoen is proud to be pioneering. At 300 MW, it will be one of the largest batteries in the world, taking our total capacity in operation or under construction in Australia to over 1.8 GW, and bringing us one step closer to our global target of 5 GW by the end of 2021.”