Neoen projects provide battery boost for grid
Portfolio financing supports new clean energy assets
The CEFC is spearheading Australia’s push to net zero emissions by backing a portfolio of Neoen assets that includes new battery storage and solar.
$100 million
CEFC commitment
1.3 GW
renewables and batteries
Boosting
clean energy capacity
Long and short duration storage assets are critical to building an energy network fit for purpose in the 21st century, enabling Australia to capitalise on its abundant natural resources of wind and solar to decarbonise the grid… Our work with Neoen adds critical additional clean energy generation to its portfolio to further accelerate the clean energy transition.Ian LearmonthCEO, CEFC
Our investment
The CEFC has committed $100 million as part of a $1.4 billion capital raise, to support a portfolio of Neoen renewable energy and battery storage assets.
The finance covers an additional capacity of 1.3 GW of renewable energy generation and battery storage.
New assets being developed with the financing include:
- The 341 MW / 1,363 MWh Collie Battery Stage 2 to provide critical support for the WA energy grid, the South West Interconnected System (SWIS)
- The 270 MW / 540 MWh Western Downs Battery Stage 1 to support the integration of more renewable energy into the National Electricity Market (NEM)
- The 440 MWp (350 MW AC) Culcairn Solar Farm in NSW, which is expected to create more than 400 construction jobs and generate enough energy to power 160,000 homes.
The Neoen portfolio financing includes backing from international banks KfW, SMBC, Society Generale, HSBC, MUFG, Mizuho, ING, Bank of China, as well as ANZ and Westpac.
Separately, the CEFC committed $55 million in February 2024 to a Neoen portfolio financing that covered 1.5 GW of assets including the Collie Battery Stage 1.
OUR IMPACT
Renewables help cut emissions at least cost
Australia needs to accelerate the development of clean energy assets if it is to meet its 2030 emissions reduction target of 43 per cent below 2005 levels, according to the Climate Change Authority (CCA).
In its 2024 Annual Progress Report, the CCA said the electricity sector could do most of the heavy lifting on cutting emissions to 2030 at least cost and get Australia ready for the end of life exit of ageing coal generators. It said Australia was deploying renewable energy infrastructure at about half the rate needed to reach Australia’s 2030 target.1
Capitalising on natural resources
The CEFC is an experienced investor in renewable generation and battery storage and uses its expertise to support the development of projects that will enable Australia to capitalise on abundant natural resources to decarbonise the grid.
Collie Battery Stage 2 is the second WA big battery to be financed by the CEFC with Neoen. Together with Collie Battery Stage 1, it will have the ability to charge and discharge some 20 per cent of the average demand in Western Australia’s main electricity network, the South West Interconnected System. Collie Battery Stage 1 began operating ahead of schedule and has been delivering grid reliability services with AEMO since 1 October, 2024.
The Culcairn Solar Farm, being constructed in the South East Riverina Region of NSW, will deliver local benefits to the region worth some $10 million over the lifetime of the project by funding a range of community benefit-sharing initiatives worth some $300,000 a year.
Neoen, the largest renewable energy company in Australia, has 4.3 GW of assets in operation or under construction. It has an extensive development pipeline, and a multi-billion-dollar forward investment plan, with ambitions to have wind, solar and battery storage assets in every state in which it operates.
This transaction underlines the unique depth of our portfolio in Australia. It serves to strengthen our owner operator business model and provides us with a solid foundation for future growth.Jean-Christophe CheylusCEO, Neoen Australia
1. Climate Change Authority, Annual Progress Report, Summary for Policymakers 2024
