HSF advises Equis on the development and financing of the Calala battery energy storage system in New South Wales

Herbert Smith Freehills (HSF) has advised Equis on the development and project financing of two battery energy storage systems (100 MW/200 MWh and 150 MW/300 MWh, respectively) (each a Facility) to be developed in Tamworth, New South Wales (together, the Calala BESS).

Tesla will supply and commission the battery systems, and Consolidated Power Projects Australia will perform the balance of plant works. The 100 MW/ 200 MWh Facility will be supported by a long-term offtake with SmartestEnergy Australia, and the 150 MW/ 300 MWh Facility will be supported by a Tesla autobidder agreement. Equis’ asset management team will continue to support the construction and operational delivery of the project.

Westpac, Société Générale and Sumitomo Mitsui Banking Corporation have provided a $260 million project financing package for the Facilities. King & Wood Mallesons advised the lenders.

The Calala BESS will store 250MW of energy which can supply two hours of electricity to power up to 115,000 homes in NSW.

Lead energy partner, Alison Dodd said, “We are delighted to have supported Equis on this milestone and innovative project. The Calala BESS is a noteworthy addition to Equis’ growing storage portfolio, and we look forward to continuing to support Equis’ ambitions in this space.”

Gerard Pike, HSF’s lead finance partner on the matter, added, “It was great to help Equis achieve limited recourse project financing for the Calala BESS Facilities. This deal is testament to Equis’ commercial and hands-on approach achieving financial close on their second greenfields BESS development after Melbourne Renewable Energy Hub and the appetite of Westpac, Societe Generale and SMBCs to lend to quality greenfields BESS projects.”

The cross-practice energy and finance teams were led by partners Alison Dodd, Gerard Pike and Kris Percy. They were supported by special counsel Ewan MacDonald and executive counsel Rebecca Davie, senior associates Josh Attard, Matthew Selth, Jennifer He, Michael Trent, Tom Dougherty and Stuart Robertson, and solicitors Tia Liu, Arthur Hancock, Sarah-Anne Butler, Holly McNaughton, Yonnie Lipshatz, Rainer Gaunt, Mika Singh, Elizabeth Papapetrou, Rosalind Wei, Leana Lim, Shay Kavallero and Joud Ghassali.

This deal is another example of Herbert Smith Freehills’ market-leading work in the renewable energy and energy storage sectors. Other recent examples in these sectors include our firm advising:

• Victorian State Electricity Commission (SEC) on its investment and offtake arrangements for the jointly owned (with Equis) 1.6GWh Melbourne Renewable Energy Hub BESS
• EnergyAustralia on its development of the 350 MW / 1400 MWh Wooreen Battery Energy Storage System in the Latrobe Valley;
• Tilt Renewables on its development of the 100 MW / 200 MWh Latrobe Valley Battery Energy Storage System;
• AGL Energy on its development of the 500 MW / 1,000 MWh Liddell Battery Energy Storage System;
• Edify Energy on its development of the 185 MW / 370 MWh Koorangie Battery Energy Storage System and sale to Sosteneo SGR Spa;
• the lenders on the development and project financing of the 200MW/400MWh Rangebank Battery Energy Storage Systems, located in Cranbourne West, Melbourne, Victoria; and
• Edify Energy in relation to the greenfield project financing for the majority sale of the 150MW/300MWh Riverina and Darlington Point BESS projects to Federation Asset Management in 2022.