Neoen reaches fin close on 100-MW/200-MWh Aussie battery project

Neoen SA (EPA:NEOEN) has achieved financial close on its 100-MW/200-MWh Capital Battery project in the Australian Capital Territory (ACT), the French renewable power producer said today.

The facility is already under construction and is planned to be brought live in the first half of 2023. Building works were initiated in December last year by a tie-up of South Korea’s Doosan Heavy Industries & Construction Co Ltd and Doosan GridTech.

The project is being financed through equity provided by Neoen and senior debt extended by the Clean Energy Finance Corporation (CEFC) and infrastructure fund manager Infradebt.

To be equipped with 627 Doosan lithium-ion units, the Capital Battery will operate under a seven-year contract with AGL Energy Ltd (ASX:AGL) that will enable the Aussie utility to virtually charge and discharge a portion of its capacity. The deal was signed in April and concerns up to 70 MW of the system’s capacity. Additionally, the facility will deliver grid support services to the local electricity network.

Neoen secured the project in an ACT renewable energy auction back in 2020. The French firm will be the long-term owner and operator of the battery. Its plan is to launch a community co-investment scheme for the project after its commissioning, it said.

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