Fotowatio Renewable Ventures (FRV) Australia, a leading developer of sustainable energy solutions and part of Jameel Energy and OMERS Infrastructure, has announced the financial close of its Gnarwarre Battery Energy Storage System (BESS) project in the state of Victoria. With a capacity of 250 MW/500 MWh, the project is backed by FRV Australia’s portfolio funding facility closed in July 2024. Upon completion, FRV Australia’s portfolio will reach a total installed capacity of around 1.4 GW.

Gnarwarre marks a strategic milestone in FRV Australia’s commitment to large-scale storage solutions, which are crucial for grid stability and support Australia’s transition to clean energy. The facility will include grid-forming inverters and is FRV Australia’s largest BESS project to date, following the 100 MW/200 MWh Terang BESS, currently under construction.

The project’s financing has been secured from a syndicate of five financial institutions: Westpac Banking Corporation, United Overseas Bank, and Intesa Sanpaolo, who were already part of the existing portfolio facility, along with two new lenders, KfW IPEX-Bank and Export Development Canada. The Clean Energy Finance Corporation (CEFC), an original member of the lending group, supported the project in the early financing stages and stepped aside once sufficient funding was secured. White & Case served as FRV Australia’s legal counsel, while Allens advised the lenders.

The project has also received support from ARENA (the Australian Renewable Energy Agency), which granted AUD 15 million under its large-scale battery storage funding round. This support enables the integration of grid-forming inverter technology, allowing the battery to deliver critical system stability services traditionally provided by synchronous generation such as coal and gas. FRV Australia expressed its gratitude to ARENA for its ongoing support in driving grid-scale storage solutions and accelerating the energy transition.

“The financial close of Gnarwarre is a major step for FRV Australia as we expand our battery storage projects and strengthen our position as a renewable energy leader in Australia. Large-scale storage like this is essential to provide the backup capacity needed for a reliable and clean energy system. This project also supports the state of Victoria in achieving its ambitious renewable energy and net-zero targets. I would like to thank both our existing and new lenders, as well as ARENA, for playing a key role in making this possible,” said Carlo Frigerio, Managing Director of FRV Australia.

With this milestone, FRV Australia continues to expand its integrated portfolio of generation and storage projects, contributing to the development of a more resilient and sustainable grid. The company currently operates nine solar PV plants across Australia and New Zealand, exceeding 1 GW of capacity, and is developing two large-scale BESS projects totalling 350 MW.