Australia, Projects, Renewables, Storage

$400m secured for 4hr MREH project

The Melbourne Renewable Energy Hub (MREH), jointly owned by Equis Australia and Victoria’s Government-owned renewable energy company SEC, has successfully secured a groundbreaking $400 million in non-recourse debt financing for its Battery Energy Storage System (BESS).

The debt syndicate, including Export Development Canada, Societe Generale, Standard Chartered, and Westpac, contributed to this landmark transaction, marking the first financial close for a four-hour BESS in Australia’s National Electricity Market (NEM).

The financing will fund the construction of a 200MW/800MWh BESS project, operated by SEC (MREH A3), contributing significantly to Victoria’s energy storage and renewable energy transition.

MREH, consisting of three 200MW projects, becomes Australia’s largest BESS upon completion. It connects to the NEM’s 500 KV transmission system, allowing rapid electricity dispatch and uniquely supporting three Victorian Renewable Energy Zones.

Upon completion, MREH will offer 1.6 GWH of energy storage, sufficient to power up to 200,000 homes during peak periods.

The project is a collaboration with the SEC, a government-owned renewable energy company, emphasising the government’s commitment to affordable, reliable renewable energy. SEC’s involvement catalysed project success, enabling expansion from a two-hour to a four-hour storage capacity.

Following MREH A3’s completion in 2025, the SEC will oversee market operation, providing firming services to support electricity supply to Victorian Government customers.

David Russell, co-founder and managing director of Equis said the company found the equity partnership model to be a very effective vehicle for government-industry collaboration to bring forward renewable energy projects.

“We think this model should be considered by other state governments because it allows their investments to earn sustainable returns that can be reinvested in further renewable energy initiatives,” Russell said.

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