Battery energy storage developer Eku Energy has reached a financial close for 250MW/500MWh battery energy storage system (BESS) in Canberra, the Australian Capital Territory (ACT).
The 2-hour duration Williamsdale BESS will utilise Tesla Megapack BESS units and connect to the Evoenergy electricity distribution network. It will be registered to participate in the National Electricity Market (NEM), the main interconnected electricity network covering Australia’s east and south coasts.
Eku Energy confirmed the BESS will operate in grid-forming mode and provide system strength services and fast-acting frequency control ancillary services (FCAS). Eku Energy will receive fixed quarterly payments over a period of 15 years from the Territory through trading in the NEM.
A unique aspect of the BESS is that the developer, Eku Energy, secured a revenue swap arrangement with the ACT government, meaning the Territory will receive a share of the revenue secured from participation in the NEM.
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The BESS, which is atncipated to be opertaional in 2026, will operate in grid-forming mode and provide system strength services and fast-acting frequency control ancillary services. Eku Energy will receive fixed quarterly payments over a period of 15 years from the Territory for these services.
Daniel Burrows, CEO at Eku Energy, highlighted the revenue contract’s value with the ACT government, and deemed the BESS a “critical step forward” for the Territory.
“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. 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,” Burrows said.
Eku Energy partnered with the ACT government last year to develop, build, and operate the 250MW BESS. At the time, this was deemed a significant step in delivering the Big Canberra Battery ecosystem.
The initiative was first announced as part of the state’s 2020-2021 budget with AU$100 million (US$67 million) in funding pledged towards it. The government ran a procurement process for the grid-connected BESS which began in mid-2022 before its award to Eku just under a year later.
Eku Energy is an energy storage development platform that was launched through the Macquarie Asset Management-owned Green Investment Group (GIG) in late 2022
