Developer Fotowatio Renewable Ventures (FRV) Australia has achieved the financial close of a AUS$1.2 billion (US$780 million) refinancing facility to support a 1GW portfolio of eight solar PV projects.
FRV Australia confirmed the facility will also finance the construction of FRV Australia’s first stand-alone battery energy storage system (BESS) project. The project, named Terang BESS, will be located in Victoria and have a total anticipated discharge capacity of 100MW and a storage capacity of 200MWh.
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Once completed, the Terang BESS will provide additional stability to the electricity network as further variable renewable energy generation technologies are added. It will do this by storing power when there is a lot of energy available and releasing this stored energy when demand is higher. Canadian Solar and TEC-C are FRV’s delivery partners for the project.
The organisation, a part of Jameel Energy and the Canadian infrastructure fund OMERS, said the finance will currently support all solar PV plants in its portfolio and provide a foundation for further growth in the Australian market.
This includes numerous solar PV projects that PV Tech has covered in recent years, including the 125MW Lilyvale, 56MW Moree, 90MW Sebastopol, 83.7MW Goonumbla, 115MW Metz, 106MW Winton, 300MW Walla Walla and 2.45MWdc Dalby projects.
It is worth noting that the Dalby project was FRV Australia’s first solar-plus-storage project to come online. It features a 2.54MW/5MWh co-located BESS in a 30-hectare area.
The debt package includes a term loan that refinances the portfolio’s actual debt, a Letter of Credit (LC) facility, and a working capital facility.
Eleven financial institutions participated in the refinancing process, including ING Bank, Westpac Banking Corporation, MUFG Bank, Société Générale, Norddeutsche Landesbank, Mizuho Bank, Intesa Sanpaolo, United Overseas Bank, the Clean Energy Finance Corporation, China Construction Bank, and the Agricultural Bank of China.
Macquarie Capital acted as financial advisor on the transaction, White & Case acted as legal adviser for FRV and Allens for the lenders.
Carlo Frigerio, CEO of FRV Australia, said the refinancing represents a “significant milestone in our [FRV Australia’s] journey” and that it secures not only the future of its current operations but also provides “a strong foundation for our continued growth and commitment to developing renewable energy projects across Australia”.
