Hong Kong PE firm to help Maoneng build 1.9-GW Aussie battery, solar portfolio

Australian renewables developer Maoneng Group has teamed up with Hong Kong-based private equity firm Gaw Capital Partners to fast-track a 1.9-GW portfolio of predominantly battery projects in Australia, it was announced on Wednesday.

Gaw Capital Partners is making a majority investment in Maoneng’s Australian business through its growth equity arm, Gaw Growth Equity Fund I. This marks an entry into the renewable energy sector for the real estate private equity firm.

The partnership, Gaw Maoneng Renewables, will progress six energy storage projects in Victoria, New South Wales and South Australia, including Maoneng’s lead project -- the 240-MWp/480-MWh Mornington battery in Victoria, which is expected to start construction in the first quarter of 2023. The portfolio also includes the Gould Creek battery in South Australia, which has also secured development application approval, three battery projects in New South Wales with submitted applications and the planned Merriwa Energy Hub consisting of 550 MW of solar and 400 MW/1,600 MWh of battery storage in New South Wales.

The construction of these projects is estimated to require more than AUD 2 billion (USD 1.3bn/EUR 1.3bn) of equity and debt financing, which will be secured with the help of Gaw Capital Partners.

The joint venture will also study new renewable energy opportunities.

“The transition to renewable energy in Australia is accelerating under this government’s policy, and batteries are a key piece to the puzzle in facilitating higher grid penetration by solar and wind. The partnership allows us to focus on the job and to get it done sooner,” said Gaw Maoneng Renewables chief executive and managing director Morris Zhou.

“We have been looking for some time at a suitable entry into the clean energy investment sector, and utility-scale batteries underpin the dispatchable energy requirements for the grid to transition from its mix from coal and gas to renewable energy generation,” commented Herbin Koh, director, head of venture and growth equity of Gaw Capital.

(AUD 1 = USD 0.632/EUR 0.643)

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