Edify Energy back to shop Victorian battery after Riverina deal

afr.com:

Renewables developer Edify Energy has been sounding investors for a 185-megawatt battery energy storage system in Victoria via ICA Partners, the same adviser that helped it sell NSW’s biggest battery last year.

Edify Energy’s Riverina Battery. 

Street Talk understands the Koorangie BESS project has been pitched as 370 megawatt-hour asset that would strengthen the network within the Murray River Renewable Energy Zone, and benefit from long-term contracted revenues.

ICA Partners has been chipping away on a deal since at least May. It was not known how far it had got in locking in a buyer, but sources said the suitors that flocked to Edify’s auction for its 150-megawatt Riverina battery were no longer on the scene.

The Riverina battery saw Macquarie Infrastructure and Real Assets and (the eventual winner) Federation Asset Management go toe to toe in the final round, while Palisade Investment Partners’ impact arm also took a look.

This time around, the winning bidder is likely to be someone other than the original trio. Sources said Macquarie, Federation and Palisade had looked at Koorangie but were no longer involved. Despite that, it’s a decent asset and should trade eventually.

Located near Kerang in the north-west of Victoria, Koorangie is expected to be funded via equity non-recourse project finance debt. ICA was tasked with running the two processes concurrently, with the sale expected to be finalised at roughly the same time as the senior debt.

Potential buyers were told Koorangie’s revenues would be underpinned by a 15-year tolling agreement with an investment grade counterparty in exchange for full operational rights. It would be CPI-linked and priced at flat fees, meaning the offtaker would take on the market risk