Fotowatio Renewable Ventures (FRV) Australia has reached financial close on the 250MW/500MWh Gnarwarre battery energy storage system (BESS) in Victoria.
Confirmed earlier this week (4 August), FRV Australia announced the financial close on the 2-hour duration BESS as part of an AU$1.2 billion (US$780 million) portfolio finance facility closed in July 2024.
The organisation, which is jointly owned by Saudi Arabia’s Abdul Latif Jameel Energy and the Canadian infrastructure fund OMERS, confirmed that, upon completion, the addition of the Gnarwarre BESS will increase its portfolio’s total installed capacity to around 1.4GW.
A syndicate of five financial institutions provided project financing. This group included Westpac Banking Corporation, United Overseas Bank and Intesa Sanpaolo, which were already part of the existing financing facility.
Enjoy 12 months of exclusive analysis
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Annual digital subscription to the PV Tech Power journal
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
Additionally, two new lenders were added to the portfolio: KfW IPEX-Bank and Export Development Canada. The Clean Energy Finance Corporation (CEFC), which recently spoke to ESN Premium about the need for further policy support for long-duration energy storage (LDES), also financed the project.
Carlo Frigerio, CEO of FRV Australia, believes the project represents a “very important” step in strengthening the company’s battery storage project pipeline.
“Large-scale storage like this is essential to providing backup capacity that supports a reliable and clean energy system. This project also contributes to Victoria achieving its ambitious renewable energy and net-zero emissions goals,” Frigerio said.
Grid-forming inverters to feature at the Gnarwarre BESS
The Gnarwarre BESS will be located within the Surf Coast Shire, approximately 82km southwest of the state capital, Melbourne. It will connect to the National Electricity Market (NEM), which covers Australia’s eastern and southern coasts, and provide grid reliability services.
FRV Australia acquired the Gnarwarre battery storage project from ACE Energy in 2021. It will be the organisation’s biggest energy storage project in Australia to date, surpassing the 100MW/200MWh Terang BESS, which is currently under construction in Victoria.
The Gnarwarre BESS will also feature grid-forming inverters, which have become increasingly common in Australia. Recently, Tesla’s head of business development and sales, Megapack APAC, Shane Bannister, declared that the company is unlikely to sell another battery without grid-forming capabilities in the country.
Grid-forming with advanced inverters continues to be a big topic for the Australian battery storage market. The Australian Renewable Energy Agency (ARENA) is providing funding support for a wave of large-scale BESS projects that include smart power electronics equipment, including new builds and retrofitting them to existing projects.
Examples of grid-forming BESS in Australia include the likes of French independent power producer (IPP) Neoen’s 540MWh Western Downs stage one BESS in Queensland, Australian energy major AGL Energy’s 2,000MWh Tomago BESS in New South Wales, and specialist infrastructure investor Sosteneo’s 370MWh Koorangie BESS in Victoria.
Our publisher, Solar Media, will host the Battery Asset Management Summit Australia 2025 on 26-27 August in Sydney. You can get 20% off your ticket using the code ESN20 at checkout.
