The $190 million battery in Victoria will rely totally on equity funding as traditional lenders remain wary of its full exposure to the merchant market.
Private renewables developer Maoneng expects to seal an all-equity funding deal for a huge battery project in Victoria’s Mornington region by May after securing critical development approval for the two-hour, 240-megawatt project.
“We’ve got in total 950-megawatt power, approximately 1.83 gigawatt hours of batteries that we’re looking to start construction on by the end of this calendar year,” Maoneng co-founder and chief executive Morris Zhou told“Once we have finished off this round of the battery portfolio, we will reassess the market conditions and look to ... progress further on some of the solar projects that we have in our portfolio next year.
Mr Zhou says modelling done by Maoneng and its external advisers show the commercial case for the battery stacks up on those revenues alone. Still, equity investors are set to come into the project who have international experience in markets such as Britain, where batteries have been developed on a fully merchant basis since 2016, and who are comfortable with the risk they would be exposed to, Mr Zhou said.
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