Edify Energy to Boost Solar and Battery Projects After $1.1 Billion Acquisition
Edify Energy, an Australian developer specialising in renewable energy and storage, has announced plans to expedite the deployment of its extensive portfolio of large-scale solar and battery hybrid projects. This follows a significant $1.1 billion acquisition by Canadian investment firm La Caisse, revealed on Monday after a sales process managed by Lazard Australia. The deal marks a substantial financial boost for Edify, which was established a decade ago by its founder and CEO, John Cole.
La Caisse, which has existing infrastructure investments in Australia, will provide the necessary equity to advance what are expected to be the country’s two largest solar battery hybrid projects, boasting a combined capacity of 900 megawatts (MW) and 3,600 megawatt hours (MWh).
Major Projects in the Pipeline
One of the key projects is located at Smoky Creek and Guthrie’s Gap, near Gladstone in central Queensland. This initiative has secured a partnership with mining giant Rio Tinto, aimed at supplying power to its aluminium smelters and refineries, which are transitioning from coal to renewable energy and storage by the decade’s end.
The second major project, situated at Ganymirra and Majors Creek near Townsville, has already been recognised as a winner in a federal government Capacity Investment Scheme auction, providing it with an underwriting agreement that should facilitate financing and contracts with other stakeholders.
Additionally, Edify is working on a third significant project, Nowingi in Victoria, which will integrate a 300 MW solar plant with a 2,400 MWh battery. This project has recently received environmental approval from the federal government.
Edify’s Role in Australia’s Battery Market
Edify has been a pioneer in Australia’s battery sector, having constructed the nation’s first co-located battery at Gannawarra, which is adjacent to a solar farm but operates independently. The company has also developed three storage units at the Riverina complex in New South Wales.
Furthermore, Edify secured a unique “system strength” contract for its newly launched Koorangie battery in Victoria and is actively preparing a range of new projects for approval, including initiatives at Peninsula and Burroway. The company is increasingly convinced, alongside a growing number of developers, of the potential for solar and battery hybrids to meet the demands of major clients like Rio Tinto, while remaining competitively priced compared to wind energy, which faces various challenges including planning, transmission, social acceptance, and rising costs.
John Cole expressed his enthusiasm about the agreement with La Caisse, describing it as a crucial moment for Edify. He noted that it would enhance the company’s financial stability, enabling a significant acceleration in the execution of reliable green energy solutions. “I am immensely proud of what Edify has achieved and the outstanding team that delivers innovative solutions to meet our customers’ and the grid’s needs,” he stated.
He further added, “In La Caisse, we have found the ideal partner to propel our business forward and elevate Edify’s strong market position.”
La Caisse’s Investment Strategy
La Caisse, based in Quebec, manages net assets of $C496 billion, equivalent to over $A550 billion. This acquisition is part of a broader trend of substantial international investment in the Australian market, with other notable players including Brookfield (Neoen and X-Elio) and BlackRock (Akaysha Energy).
Emmanuel Jaclot, an executive vice-president at La Caisse and head of infrastructure and sustainability, commented that the Edify projects will enhance the grid and contribute to decarbonisation efforts. “This reflects our strong belief in the essential role these technologies will play in the global energy transition,” he remarked.
The acquisition is still pending various change-of-control and regulatory approvals. La Caisse was advised by ICA Partners and Clifford Chance for financial and legal matters, respectively, while Edify received guidance from Lazard Australia and Herbert Smith Freehills for their advisory needs.
