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Highlights
- Eku Energy (owned by Macquarie Asset Management) advances a major battery project in ACT.
- The 500-megawatt-hour system supports peak demand, powering a third of Canberra.
- Project includes a revenue-sharing arrangement with ACT government for sustainable funding.
Macquarie Asset Management's affiliate, Eku Energy, has finalized the financing for a large-scale battery project in the Australian Capital Territory (ACT). This marks the seventh project by Eku Energy to progress to either the construction or operational phase globally, solidifying its role in the renewable energy storage landscape.
The Williamsdale battery project, part of the ACT government's "Big Canberra Battery" initiative, will boast a substantial 500-megawatt-hour storage capacity. At full capacity, this system can deliver up to 250 megawatts of power for two consecutive hours, supporting the energy needs of one-third of Canberra during peak demand periods. This substantial power reserve aligns with Canberra's goals for enhanced energy resilience and grid stability, especially during high-demand situations. Eku Energy, partly owned by British Columbia Investment Management Corporation (BCI), sees this project as a significant step in supporting regional energy infrastructure.
The financial model for this project includes a unique revenue swap agreement with the ACT government. Under this structure, the government will receive a share of revenue generated from the battery's operations in the national electricity market. In return, Eku Energy will benefit from fixed payments over a 15-year period, enabling the company to secure favorable debt financing for the project. Key financial institutions supporting the project include Westpac, Sumitomo Mitsui Banking Corporation, and MUFG Bank.
This model of fixed payments linked with revenue-sharing aims to provide both economic sustainability and operational stability for the battery system. The strategic partnership between Eku Energy and the ACT government demonstrates an innovative approach to fostering renewable energy projects through shared financial benefits, promoting long-term commitment to energy storage.
Once operational, anticipated in 2026, the Williamsdale battery system will add significant capacity to ACT's renewable energy infrastructure. Its construction not only contributes to Canberra’s renewable goals but also sets a standard for similar projects across Australia, highlighting the potential of revenue-sharing models in large-scale energy storage investments.
