Clean energy developer FRV Australia has given the final go-ahead for the construction of a 250-megawatt, two-hour battery in Gnarwarre, Victoria. The company says this asset will be critical for maintaining the stability of the transitioning power grid. FRV Australia specialises in developing renewable energy projects, providing solutions for a sustainable energy future. FRV Australia is owned by Saudi Arabia’s Jameel Energy and Canada’s OMERS Infrastructure and focuses on developing clean energy solutions.
The Gnarwarre facility will be the largest battery energy storage project undertaken in Australia by FRV to date. The project has secured financing from five lenders. Westpac, United Overseas Bank, and Intesa Sanpaolo, all existing funders of FRV, are joined by new lenders KfW IPEX-Bank and Export Development Canada.
A $15 million grant from the Australian Renewable Energy Agency (ARENA) will facilitate the integration of advanced “grid-forming” inverter technology. This technology enables the battery to deliver stability services to the grid, traditionally provided by coal and gas power plants, ensuring a more reliable and sustainable energy supply. The Commonwealth government’s Clean Energy Finance Corporation (CEFC) was initially part of the lending group but withdrew after other lenders committed to the project. FRV has not publicly disclosed the total cost of the battery project.
