Edify Energy Secures Funding for Solar and Battery Hybrid Projects
Edify Energy has successfully achieved financial closure for its Ganymirra and Majors Creek solar and battery hybrid initiative in Queensland, securing a substantial funding pool of £3.2 billion.
The two adjacent projects, which are being developed as a single entity, are set to contribute 360 megawatts (MW) of solar power alongside a 300 MW battery with a four-hour storage capacity, expected to connect to the grid by 2028.
Support from Multiple Lenders
Backed by 14 local and international lenders, Edify Energy, now a part of Canadian investment firm La Caisse, has found backing for this ambitious venture. This latest round of funding follows a previous financial closure achieved three months prior for another impressive Queensland project— the combined 600 MW solar capacity at Smoky Creek and Guthrie’s Gap, which also has 600 MW of battery storage.
The cumulative financial support from these lenders is reported to be £3.2 billion. Interestingly, some of these funds are earmarked for further projects beyond the current developments.
Building Contracts and Community Investment
DT Infrastructure has been awarded the contract to construct all these projects. With the Smoky Creek and Guthrie’s Gap initiative costing approximately £1.2 billion, Edify Energy finds itself in a financially robust position.
Furthermore, around £450 million is anticipated to flow into local communities through regional supply chains, job creation, support for First Nations businesses, and associated economic activities, bolstering the local economy significantly.
Government Support and Technological Advancements
All these projects, alongside the 300 MW Nowingi solar initiative in Victoria, have qualified for underwriting agreements under the federal government’s Capacity Investment Scheme (CIS). Edify Energy’s Chief Executive, Ben Warne, expressed gratitude for the “strong support” from the CIS, underscoring its role in fostering investment in renewable energy production and storage solutions.
According to Warne, “These projects mark the third and fourth phases to secure financial backing through the scheme. The integration of significant solar generation, coupled DC battery storage, and advanced grid-forming technology positions us to deliver cost-effective, reliable, flexible energy solutions critical for the future electricity network.”
Ongoing Interest in Solar Hybrid Investments
Investor enthusiasm for solar hybrid projects remains robust, evidenced by La Caisse’s £1.2 billion acquisition of Edify Energy and the sustained commitment of the 14 lenders in supporting large-scale solar and battery initiatives.
Moreover, these agreements empower Edify to negotiate more favourable terms with potential offtakers, as they are no longer reliant solely on buyers for securing financial closure on their projects.
Edify Energy boasts a diverse portfolio, consisting of 19 solar projects and 25 battery installations, whether independent or as support for photovoltaic systems.
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