Funding secured for 1.86 GWh Baranduda Electrical Energy Reserve

The Baranduda Electrical Energy Reserve is a planned large-scale battery energy storage system (BESS) located in north-east Victoria.

The technically advanced BESS will be located right next to AusNet’s Wodonga Terminal Station in Baranduda, and will have a grid connection of 400 MW (with 1.86 GWh energy). Intended to provide stability to the Victorian grid as coal-fired generation retires, the battery will charge when renewable generation is abundant and discharge when supply is required. Construction is scheduled for completion in late 2028.

The BESS is funded by Birdwood Energy Storage and Transition Platform (BEST), a joint venture between Aware Super and Birdwood. Birdwood is a Melbourne-headquartered, engineering-led renewable energy investment company with offices in London and Munich. It manages four investment vehicles with a diversified portfolio of approximately AU$5 billion across Australia and Europe.

Victoria’s State Electricity Commission (SEC) has also taken an equity interest in the project as well as entering into a capacity swap with the BESS. Birdwood secured additional project financing from six domestic and international lenders.

Led by Partner Chris Dynon, law firm Mallesons advised Birdwood on the project financing, revenue contracting arrangements, project development, due diligence and tax.

“Large-scale battery storage is critical to supporting Australia’s energy transition,” Dynon said. “We were very grateful for the opportunity to advise Birdwood on this technically advanced large-scale battery development in Australia.”

Dynon added that, notwithstanding challenging market conditions for new BESS projects in Australia, Birdwood had successfully completed the investment into the project by BEST, in addition to securing equity investment from the SEC and project financing with six leading lenders.

“This transaction demonstrates how firmly institutional capital and the Victorian Government are backing the firming capacity from quality projects which the state’s energy transition depends on,” he said.

Mallesons is also advising on several other major transactions that support Australia’s energy transition, including the Koolunga Battery Energy Storage System, Muswellbrook Solar Farm and Battery Energy Storage System, Jinbi Solar Farm and Wooreen Energy Storage System.

Image credit: iStock.com/Galeanu Mihai