Building the storage infrastructure to help deliver renewable power 24/7 is a key part of the transition to a clean energy future, with NAB client EnergyAustralia showing the way ahead.

EnergyAustralia has made one of its largest ever investments, starting construction earlier this year on the A$700 million Wooreen Energy Storage System (WESS) in Victoria’s Latrobe Valley[i].

NAB was a lender for the 350MW big battery project, which after its planned completion in 2027 will have capacity to power 230,000 households for up to four hours, at times of high customer demand, before needing to recharge[ii].

EnergyAustralia’s Trading & Transition Executive Dan Nugent says the cornerstone transition project, with 350MW and 4 hours in duration, will store excess renewable generation from wind and solar for times of peak customer usage, when it is dark and still.

“By continuing to integrate large-scale battery storage into EnergyAustralia’s portfolio, we’re working to address the critical need for storage in an energy market with increasing levels of renewables as we prepare for further coal retirement,” Nugent says.

Strategic location

The utility-scale battery is being built alongside the gas-fired Jeeralang power station in Hazelwood North and continues EnergyAustralia’s longstanding involvement in the region into the era of clean energy.

Nugent says this strategic location in Victoria’s energy hub means the project can leverage existing infrastructure and expertise, ensuring optimal integration with the grid to support both local and statewide energy needs.

Strong community engagement has been a priority from the start, with EnergyAustralia especially acknowledging the local Gunaikurnai Elders who gifted the project its name. Nugent says “Wooreen” means “light” and reflects the project’s role in illuminating the path to a sustainable energy future.

EnergyAustralia says the development is set to provide an economic boost to the Gippsland region, with construction expected to create about 80 jobs. The company is also investing more than A$1 million over the life of the project to support local community groups and organisations[iii].

“We’re committed to expanding our renewable energy portfolio up to three gigawatts by 2030 and continuing to develop our electricity storage and other initiatives to firm renewables,” Nugent says.

Backing the future

Given the scale of the investment, EnergyAustralia Chief Financial Officer Chris Opperman says NAB’s support as a long-term, trusted partner bank had been “instrumental in bringing the Wooreen project to fruition” with its financial backing.

“Wooreen is one of the largest standalone battery financings closed to date, and NAB’s participation reflects their deep understanding of the energy sector and commitment to supporting the energy transition,” Opperman says.

“The relationship with NAB helped us to secure the capital required to develop and deploy cutting-edge energy storage technology. Their expertise in project financing has been greatly valued.”

Energy resilience

Opperman says building robust infrastructure is paramount to ensuring stability of supply during the transition and beyond, with Wooreen and big battery energy storage systems like it providing a critical pillar in reliability.

“We are laying the groundwork for a future where renewable energy is the backbone of our energy system,” he says. “EnergyAustralia’s strategic investments in infrastructure and technology are designed to support the transition to a low-carbon economy, benefiting both our customers and the environment.

“Our efforts are focused on creating a resilient energy system that can adapt to future challenges.”

Will Scholes, Senior Associate Director in NAB’s Specialised Finance team, says EnergyAustralia’s focus aligns strongly with NAB’s role in supporting Australia’s transition to net zero.

“We’re pleased to be a key lender to the project and look forward to seeing this landmark development come to life,” Scholes says. “Battery storage projects like this are critical to the energy transition by supporting renewables and providing stability to the grid.

“We’re proud to be backing EnergyAustralia as they continue to roll out this vital transition infrastructure and decarbonise their portfolio. We look forward to working on future projects together with the goal of a net zero future.”

[i] EnergyAustralia breaks ground on its largest project investment with the 350 MW Wooreen Energy Storage System in the Latrobe Valley | EnergyAustralia

[ii] Ibid

[iii] Ibid