Victoria’s SEC and Equis Australia have secured AU$400 million in financing for their Melbourne Renewable Energy Hub (MREH) battery storage project. The MREH will consist of three separate battery energy storage system (BESS) assets with a total output of 600MW and capacity of 1.6GWh. Construction has already begun on the project, which is expected to cost a total of AU$1 billion. The financing package was raised from a syndicate that includes Societe Generale, Standard Chartered, Export Development Canada, and Westpac. This is the largest debt financing package raised to date for a grid-scale BESS project in Australia and the first financial close of a 4-hour duration BESS connecting to the National Electricity Market (NEM). The MREH is strategically important for Victoria as it will be the only battery resource in the state capable of supporting three multi-gigawatt mixed technology Renewable Energy Zone (REZ) developments planned by the government.
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