Equis starts building 500 MWh Tesla battery in Australia after securing merchant debt financing

The Australian division of Singaporean infrastructure developer Equis has reached financial close on its 250 MW/500 MWh Calala BESS, and begun construction.

Calala, 6 km southeast of Tamworth, in New South Wales’ (NSW) New England region, will be able to power 115,000 homes during peak electricity demand periods. The BESS is set to be operational by 2027.

Equis has borrowed AUD 260 million ($163 million) of non-recourse senior debt from Australian lender Westpac, France’s Societe Generale, and Japan-based Sumitomo Mitsui Banking Corporation.

The project will be structured as two facilities, one of 100 MW/200 MWh and another of 150 MW/300 MWh. An energy offtake agreement has been signed for the smaller of the two sections. Meanwhile, the 150 MW portion will operate on a merchant basis, “marking the first merchant BESS debt financing in New South Wales.”

Equis Co-founder and Managing Director David Russell said the Calala BESS has contracted Tesla to provide 138 of its Megapack batteries; Consolidated Power Projects to deliver engineering, procurement, and construction services for the balance of the plant; and Transgrid to complete connection to the Tamworth substation.

“The Calala BESS will be instrumental in supporting NSW renewable energy targets while also providing critical [grid] firming and frequency support services to the national electricity market,” said Russell.

SmartestEnergy

The Sydney-based SmartestEnergy subsidiary of Japanese multinational Marubeni has signed an offtake agreement for 100 MW/200 MWh of the project, marking SmartestEnergy’s first battery energy storage agreement.

SmartestEnergy in Australia CEO Robert Owens said battery energy storage is an vital asset in delivering a fully renewable energy grid.

“This agreement complements our business and reinforces our commitment to playing a leading role in Australia’s energy transition,” said Owens. “As the market evolves, [grid] firming assets like this will be essential to ensuring clean energy remains both reliable and cost-effective for businesses.”

The 100 MW/200 MWh portion of the BESS will connect directly to the NSW grid via an underground cable to the 330 kV Tamworth substation.

Autobidder

The 150 MW/300 MWh section of the battery will be a merchant BESS utilizing Autobidder, Tesla’s real-time energy trading and control platform. The Autobidder agreement will include revenue sharing and a minimum revenue guarantee.

From pv magazine Australia.