FRV Australia completes financial close of Gnarwarre battery project
Published by Jessica Casey,
Editor
Energy Global,
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 the Gnarwarre battery energy storage system (BESS) project, with a capacity of 250 MW/500 MWh, located in the state of Victoria. The project is financed under the portfolio financing facility closed by FRV Australia in July 2024. With the addition of this new project, FRV Australia’s portfolio will reach a total installed capacity of approximately 1.4 GW once completed.
Gnarwarre represents a strategic milestone in FRV Australia’s commitment to large scale storage solutions, critical for grid stability and supporting Australia’s clean energy transition and will count with grid forming inverters. It is FRV Australia’s largest BESS project to date, following the Terang 100 MW/200 MWh BESS currently under construction.
The project financing has been provided by a syndicate of five financial institutions: Westpac Banking Corporation, United Overseas Bank and Intesa Sanpaolo, already part of the existing portfolio facility, and two new lenders to the port-folio, KfW IPEX-Bank and Export Development Canada. The Clean Energy Finance Corporation, a member of the original lending group, also offered support to the project from the start of the financing process, stepping aside once it had attracted sufficient financing. White & Case acted as legal adviser for FRV Australia and Allens for the lenders.
The project has also received support from the Australian Renewable Energy Agency (ARENA), which awarded a AU$15 million grant under its Large Scale Battery Storage Funding Round. This funding will enable the integration of grid forming inverter technology, allowing the battery to provide critical system stability services traditionally delivered by synchronous generation such as coal and gas. FRV Australia thanks ARENA for its continued support in advancing 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 leader in renewable energy in Australia. 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. I want to thank our existing and new lenders and ARENA for playing a key role in making this possible,” said Carlo Frigerio, CEO of FRV Australia.
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Read the article online at: https://www.energyglobal.com/energy-storage/04082025/frv-australia-completes-financial-close-of-gnarwarre-battery-project/