Italy’s Sosteneo SGR S.p.A. (Sosteneo) and Australia’s Edify Energy (Edify) will build and operate a 185 MW battery in the Murray River region of Victoria.
The A$400 million Koorangie Energy Storage System (KESS) is Sosteneo’s first investment in Australia. Sosteneo is a joint venture between Generali Investments and industry experts from the global clean energy and funds management industries.
Boosting clean energy generation in the Murray River region
The energy storage system will be developed and structured by Edify using Tesla Megapacks. In an Australian first, the project will provide inverter-based grid-forming services under a 20-year contract with the Australian Energy Market Operator (AEMO).
The project has a 15-year offtake agreement with Shell Energy for the full 185 MW. The battery will increase the renewable hosting capacity of the Murray River Renewable Energy Zone. This will help facilitate additional clean energy generation in the region. The storage system will be able to power 350,000 homes for 2 hours.
The project will also contribute to Victoria’s drive to meet legislated energy storage targets of at least 2.6 GW of storage capacity by 2030 and 6.3 GW by 2035.
‘We are proud to help deliver renewable energy projects that support Australia’s energy transition and create opportunities in regional Victoria,’ says Ivor Frischknecht, Sosteneo’s Managing Partner and CIO Asia Pacific.
The Victorian Government has provided A$119 million to AEMO to support the KESS project. The funding is 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.
The project is part of a A$480 million investment the Victorian Government is making through its Renewable Energy Zone Fund in 12 projects. The projects aim to address capacity constraints and strengthen and modernise the state’s grid.
Opportunities to modernise Australia’s grid network
Australia is transforming its electricity grid to support the country’s growth in clean energy generation and storage. The Australian Government has committed A$23 billion to upgrade the grid and boost energy performance, creating investment opportunities for global energy storage companies.
Find out more about opportunities to help modernise Australia’s grid and storage network.
Austrade supports continued growth
Austrade is working with Sosteneo on growing its Australian footprint and exploring opportunities in the region.
Italy continues to be an important partner in Australia’s energy transition, as industry leaders like Sosteneo bring its capital, know-how and expertise to Australia to accelerate the country’s transformation to net zero by 2050.
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Published: 14 November 2023