The project, developed by a consortium comprising Australian renewable energy and storage company, Edify Energy, Tesla and EnergyAustralia and co-financed by WIRSOL Energy, is currently completing commissioning and operating as a market participant in the National Electricity Market. GESS is capable of powering more than 16,000 homes through two hours of peak demand before being recharged.
International law firm Ashurst advised the consortium on all aspects of the GESS including the project and regulatory structuring arrangements, the battery sale and purchase agreement and associated warranty and servicing regimes; the construction, operation and maintenance of balance of plant systems; and the long-term offtake and operational arrangements with EnergyAustralia. The project reached financial close in March 2018.
The Ashurst team was led by renewables partner Paul Newman, with support from partner Tanya Denning and assisted by counsel Teresa Scott, senior associate Dale Gill and lawyers Tristan Shepherd, Tim Rankin and Eliza Brierley. Partner Mark Disney, assisted by senior associates Laura van den Berg and Melissa Molloy and lawyer Craig Sherritt advised on the infrastructure aspects of the transaction. Real estate advice was provided by senior associate Carol Kahler and lawyer Michelle Tesch, with counsel Emma Butler and senior associate Caroline Hogan advising on IP matters.
Commenting on the transaction, Paul Newman, said:
"We are very proud to have been involved with GESS and to assist the consortium to overcome some unique regulatory and technical challenges to become the first battery storage system that has been retrofitted to an existing solar farm. The facility demonstrates the great opportunity for integrating large-scale battery storage with solar projects."
This is the first time a utility-scale battery system has been retrofitted to an existing solar project, the Gannawarra Solar Farm, providing a new commercial model for other renewable and storage facilities in Australia.
Australian renewable energy company Edify Energy oversaw the deployment and construction of the project, which utilises Tesla’s lithium ion battery technology.
Energy retailer EnergyAustralia will charge and dispatch energy from the facility until 2030. This is in addition to a long-term agreement to buy all the electricity generated from the co-located Gannawarra Solar Farm.
EnergyAustralia will operate the combined solar farm and battery facility in a coordinated way that better serves the Victorian energy market than could be achieved by a stand-alone renewable asset. Peter Limbers, energy partner, separately assisted EnergyAustralia.
GESS was selected by the Victorian Government under its Energy Storage Initiative to integrate a 25MW / 50MWh Tesla Powerpack battery with the 60MWDC Gannawarra Solar Farm. The Australian Renewable Energy Agency on behalf of the Australian Government and the Victorian Government Department of Environment, Land, Water and Planning supported GESS with $25 million in grant funding.
