Zen Energy secures Stonepeak funding for 111-MW battery energy storage system project in Australia

US infrastructure investor Stonepeak has pledged to invest in a 111-MW/291-MWh battery energy storage project under development by Aussie renewable energy retailer Zen Energy in South Australia.

The companies have sealed a definitive agreement that will see the New York-based alternative investor provide up to AUD 70 million (USD 45.6m/EUR 42m) for the project. According to a joint statement released on Monday, the scheme will create the second-largest energy storage battery connected to South Australia’s electricity network, after the 150-MW/193.5-MWh Hornsdale Power Reserve.

The financing injection will be made by Peak Energy, Stonepeak’s Asia Pacific-focused renewables platform. It will facilitate the construction of the Templers battery, some 60 km (37.3 mi) north of Adelaide. With building works slated to commence in the second quarter, the lithium-ion battery is expected to be fully energised to start providing services to the South Australian grid by the second trimester of 2025.

Zen Energy acquired the Templers battery project from Renewable Energy Solutions in March last year. The company said its ability to install the system is underpinned by the South Australian government’s commitment to a long-term renewable energy contract.