Fotowatio Renewable Ventures (FRV) Australia, a prominent developer of sustainable energy solutions and part of Jameel Energy and OMERS Infrastructure, has successfully achieved financial close for its 250 MW/500 MWh Gnarwarre battery energy storage system (BESS) project in Victoria, Australia. This significant milestone, financed under FRV Australia's existing portfolio facility, elevates the company's total installed capacity to approximately 1.4 GW upon completion, underscoring its expanding commitment to large-scale storage solutions vital for grid stability.

The Gnarwarre project represents FRV Australia's largest BESS endeavor to date, surpassing its 100 MW/200 MWh Terang BESS currently under construction. The financing syndicate for Gnarwarre includes Westpac Banking Corporation, United Overseas Bank, and Intesa Sanpaolo, all existing lenders, alongside new participants KfW IPEX-Bank and Export Development Canada. The Clean Energy Finance Corporation, an initial supporter, stepped aside once sufficient financing was secured, demonstrating robust market confidence in the project.

Crucially, the project received an AU$15 million grant from the Australian Renewable Energy Agency (ARENA) under its Large Scale Battery Storage Funding Round. This funding is instrumental in facilitating the integration of grid-forming inverter technology. This advanced capability allows the Gnarwarre BESS to provide critical system stability services—such as inertia and fault current—traditionally supplied by synchronous generators like coal and gas-fired power plants, thereby enhancing grid reliability during the transition to higher renewable penetration.

Carlo Frigerio, CEO of FRV Australia, emphasized the project's strategic importance. "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 leader in renewable energy in Australia," Frigerio stated. He further highlighted that "Large scale storage like this is essential to provide firming capacity that supports a reliable and clean energy system. This project also helps the State of Victoria reach its ambitious renewable energy and net-zero targets." Frigerio acknowledged the pivotal roles played by both existing and new lenders, as well as ARENA, in bringing the project to fruition.

The Gnarwarre BESS is poised to significantly contribute to Victoria's renewable energy goals, providing essential firming capacity and grid services that are indispensable for integrating intermittent renewable energy sources into the national electricity market. This project reinforces the growing trend of deploying advanced battery technologies to underpin a stable and decarbonized energy future.