Equis Australia has kicked off construction on a monumental project that could reshape the energy landscape of New South Wales (NSW). The Calala battery energy storage system (BESS), located just 5.8km southeast of Tamworth, is set to become a linchpin in Australia’s renewable energy transition. With a capacity of 250MW/500 megawatt hours (MWh), this facility will be capable of powering 115,000 homes during peak times, a significant boost to the region’s energy infrastructure.
The project, backed by a A$260m ($163m) financing package from Westpac, Société Générale, and the Sumitomo Mitsui Banking Corporation, is designed as two independent entities. One portion, a 100MW/200MWh segment, is supported by a long-term offtake agreement with Smartest Energy. The remaining 150MW/300MWh will operate as a merchant BESS, leveraging Tesla’s Autobidder platform for real-time trading and control. This dual approach not only ensures financial stability but also maximizes the project’s revenue potential through strategic market participation.
David Russell, co-founder and managing director of Equis, underscored the project’s strategic importance. “The Calala BESS will be instrumental in supporting New South Wales’ renewable energy targets while also providing critical firming and frequency support services to the National Electricity Market (NEM),” Russell stated. This support is crucial for integrating more renewable energy sources into the grid, a pressing need as Australia accelerates its clean energy ambitions.
The construction phase alone is expected to create 170 jobs, with an additional seven roles to be maintained during operation. Equis has been proactive in engaging with the Tamworth community since 2022, ensuring local support and addressing any concerns. Furthermore, through a Voluntary Planning Agreement (VPA), the project will contribute A$2m to the Tamworth Regional Council, demonstrating Equis’ commitment to community development.
Mahesh Reddy, head and managing director of Equis Australia, highlighted the project’s collaborative nature. “Calala BESS has contracted Tesla to provide 138 Tesla megapacks, Consolidated Power Projects to deliver the engineering, procurement, and construction (EPC) of the balance of plant, and Transgrid to complete the connection into the Tamworth Substation,” Reddy said. This partnership with experienced counterparts ensures the project’s timely and efficient delivery.
The Calala BESS is not Equis’ only venture in the renewable energy sector. In April 2023, Equis Development formed a 50/50 consortium with SSE Renewables to bid for the Gippsland offshore wind projects in Victoria. This move signals Equis’ broader strategy to diversify its portfolio and contribute to Australia’s renewable energy goals.
The Calala BESS project is more than just a battery storage facility; it is a testament to Australia’s commitment to a sustainable energy future. As the project progresses, it will be interesting to see how it influences the broader energy sector, particularly in terms of grid stability, renewable energy integration, and market dynamics. The success of Calala could set a precedent for similar projects, accelerating the transition to a more resilient and sustainable energy landscape.
