Mallesons has advised Birdwood on the Baranduda Electrical Energy Reserve, a technically advanced large-scale battery energy storage system (BESS) connected via four independent grid connections and located in north-east Victoria. We assisted Birdwood on the transaction structuring, revenue contracting, project financing and tax aspects of the project.
Located directly adjacent to AusNet’s Wodonga Terminal Station in Baranduda, the project will have a grid connection of 400MW (with 1.86 GWh energy). This BESS will provide stability to the Victorian grid, designed to help keep Victorian power reliable as coal-fired generation retires. The battery will charge when renewable generation is abundant and discharge when supply is required. Construction is scheduled for completion in late 2028.
Baranduda Electrical Energy Reserve is funded by Birdwood Energy Storage and Transition Platform (BEST), a joint venture between Aware Super and Birdwood. SEC have also taken an equity interest in the project and the SEC has entered into a capacity swap with the project. Birdwood, who was advised by Apex Capital Advisors, also secured project financing from six domestic and international lenders for the project.
Birdwood is a Melbourne headquartered, engineering led renewable energy investment manager with offices in London and Munich. It manages four investment vehicles with a diversified portfolio of approximately A$5 billion across Australia and Europe.
The Mallesons team was led by Partner Chris Dynon who was supported by a large cross-disciplinary team across the Mallesons network. The core members of the Mallesons team were Senior Associates Simon Brown and David Kennelly and Solicitor Emma Murphy on project financing, Partner Jo Crew and Senior Associate Madeleine Coates on the revenue contracting arrangements, Senior Associate Edward Kus and Solicitor Sandon Hayes on project development and due diligence and Partner Scott Heezen and Special Counsel Peter Scott on tax.
Commenting on the transaction Chris Dynon said:
“Large-scale battery storage is critical to supporting Australia’s energy transition. We were very grateful for the opportunity to advise Birdwood on this technically advanced large scale battery development in Australia. Notwithstanding challenging market conditions for new BESS projects in Australia, Birdwood successfully completed the investment into the project by Birdwood Energy Storage and Transition Platform (BEST), a joint venture between Aware Super and Birdwood, as well as an equity investment from the SEC and secured project financing with six leading lenders. This transaction demonstrates how firmly institutional capital and the Victorian government are backing the firming capacity from quality projects which the state’s energy transition depends on.”
Mallesons continues to advise on leading transactions supporting Australia’s energy transition, including the Koolunga Battery Energy Storage System, Muswellbrook Solar Farm and Battery Energy Storage System, Jinbi Solar Farm and Wooreen Energy Storage System.
