Eku Energy reaches financial close on 500 MWh ACT battery

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Eku Energy, jointly owned by Macquarie Group and British Columbia Investment Management Corporation (BCI), announced it has reached a final investment decision on its 250 MW / 500 MWh Williamsdale battery energy storage system (BESS).

Set to be operational in 2026, the two-hour capacity battery will be deployed at Williamsdale on the Australian Capital Territory’s (ACT) southeast border. Tesla has been awarded the battery supply contract. while Consolidated Power Projects (CPP) will supply the balance of plant and deliver the project as Eku’s construction partner.

Eku said the Williamsdale BESS will be operating in grid-forming mode and will be capable of providing system strength services along with fast-acting frequency control ancillary services, helping to underpin the ACT’s renewable energy goals.

The battery is underpinned by a financing deal that will see the ACT government receive a share of the revenue from the merchant operations of the battery in the National Electricity Market (NEM) while the Territory will provide Eku with fixed quarterly payments over 15 years.

“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 to deliver clean energy solutions that are safe, secure and cost-effective,” Eku Chief Executive Officer Daniel Burrows said.

“The Williamsdale BESS is a critical step forward in supporting the Territory’s clean energy future and we are excited and proud to be one step closer to its delivery.”

Elias Saba, Chief Technology Officer at Eku, said the contracted revenue stream had enabled the project to access competitive debt finance from lenders Westpac, Sumitomo Mitsui Banking Corporation (SMBC) and MUFG Bank.

“This project highlights how innovative revenue contracting models play an important role in advancing the development of large-scale battery projects, enabling value creation for the ACT government and the ability to secure financial backing to deliver a low-cost energy storage solution,” he said.

The Williamsdale battery is part of a growing portfolio for Eku which was established in late 2022 and now has seven assets in either operations or construction and approximately 50 projects in the development pipeline across Australia, the United Kingdom, Japan and Italy.

It’s Australian projects include the 200 MW / 400 MWh Rangebank and 150 MW/150 MWh Hazelwood batteries in Victoria. It has also revealed plans to build a 300 MW / 1,200 MWh battery project in that state.

The proposed Tramway Road project is to be situated adjacent to the 500 kV / 220 kV Hazelwood terminal station in the Latrobe Valley. Eku said the project is the early stages of development with planning and environmental studies currently underway.

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