BW ESS has acquired the 250MW/1,000MWh Yanco battery energy storage system (BESS) in Riverina, New South Wales, from Australian developer ACEnergy, taking on responsibility for the project’s construction and long-term operation.
Yanco BESS will connect to the Yanco 132kV substation, located roughly 5km south of Leeton and around 500km west of Sydney.
The project will provide firming capacity, energy arbitrage and system security services to the National Electricity Market (NEM). Site construction is due to begin later this year, with commercial operation planned for 2028.
ACEnergy developed the project from origination through to ready-to-build status, securing land, planning approval, grid connection and the key project rights and contracts required before sale.
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Having acquired the asset, BW ESS will now take on construction delivery, long-term operation and ongoing community and stakeholder engagement.
Yanco is the fifth large-scale BESS development ACEnergy has taken to financial close, and the company said the sale reflects its ability to partner with long-term capital to deliver projects once they reach a construction-ready stage.
Global energy storage technology company CATL has been appointed system integrator for Yanco BESS, with ACLE Services engaged as balance of plant contractor.
Both companies will also provide long-term operations and maintenance services once the project is operational. The project’s revenues are underpinned by a capacity swap arrangement, providing long-term contracted cash flow, a structure increasingly common among Australian BESS developers seeking to reduce exposure to wholesale price volatility.
A project shaped by planning disputes and community commitments
Yanco BESS has moved through a longer approvals process than many comparable projects.
The development was referred to the NSW Independent Planning Commission after it attracted objections during public consultation, many of which originated from interstate residents.
The commission approved the 250MW/1,100MWh system in October 2025 as a State Significant Development, with the project’s storage capacity later confirmed at 1,000MWh under the acquisition.
The BESS occupies approximately eight hectares of land near Yanco, just outside the South West Renewable Energy Zone (REZ), and will store energy generated by a nearby large-scale solar PV project.
The approvals process also included a dispute over local financial contributions.
In 2024, Leeton Shire Council rejected a proposed voluntary planning agreement from ACEnergy worth AU$730,000 (US$514,639) over five years, instead requiring the standard one per cent development levy, equivalent to roughly AU$2.5 million based on the project’s estimated AU$250 million construction cost.
ACEnergy had argued for a reduced contribution on the basis that battery storage assets do not generate electricity revenue in the way solar or wind projects do, but the council maintained the full levy applied.
Under BW ESS ownership, a AU$3 million Voluntary Planning Agreement eventually reached with the council will continue, alongside commitments to local employment and procurement during construction.
Yanco also forms part of a broader supply relationship ACEnergy established with CATL.
In August 2025, ACEnergy signed a 3GWh battery storage supply and integration deal with the Chinese manufacturer, covering Yanco, alongside the Joel Joel and Little River projects in Victoria, with CATL providing batteries, inverters, power plant controllers, and supervisory control systems across all three developments.
For BW ESS, the acquisition adds to an Australian portfolio spanning 1.3GWh of projects in commissioning, 1GWh entering construction, and a greenfield pipeline of around 2GW across the NEM.
Globally, the company holds more than 540MWh of operating BESS capacity, with roughly 11GWh under construction across markets including the UK, Italy, Germany, Spain and Sweden.
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