Melbourne Renewable Energy Hub - Phase 1 (MREH Phase 1) is the first of the two-phase Melbourne Renewable Energy Hub development. It is jointly owned by Equis Australia and the State Electricity Commission of Victoria.
Phase 1 will comprise three batteries and have a total capacity of 600 megawatts (MW) / 1600 megawatt hours (MWh):
- Two batteries will have a capacity of 200 MW/400 MWh and will have a two-hour storage capacity. Equis will own 70 per cent of these batteries, with the SEC having a 30 per cent ownership share.
- The third battery, MREH A3, will have a capacity of 200 MW/800 MWh and will have a four-hour storage capacity. Equis will own 51 per cent of this batteri, with the SEC having a 49 per cent ownership share.
MREH A3 is subject to a 100 per cent offtake agreement with the SEC.
Under Phase 1, transmission connections will also be constructed. Scope of works includes the design and construction of the 500kV MREH Substation and the 1.75km 500kV transmission cable that will link into the existing Sydenham's terminal station, allowing for the MREH to connect into the National Electricity Market.
Key Dates
| Nov 2023 | Construction Commencement |
| Nov 2023 | Financial Close |
Financing
| Equity Finance: | The State Electricity Commission of Victoria |
| Equity Finance: | Equis |
| Debt Finance: | MREH Debt Financing |
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MREH Debt Financing is a debt syndicate comprising Export Development Canada, Societe Generale, Standard Chartered, and Westpac. MREH Debt Financing will finance the construction of the 200 MW/800 MWh battery project (MREH A3). |
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Procurement
| Procuring Agency: | Equis |
| Successful Tenderer: | - Provision of Battery Energy Storage Systems: Tesla - Engineering, procurement, construction, and commissioning for the Balance of Plant scope and BESS installation: Samsung C&T and Genus Plus Group Joint Venture |
| Related contracts: |
PROJECT HISTORY
| Jul 2021 | Victorian Government Department of Planning approves project and panel authority decision adopts approval of of amendments. |
| Oct 2023 | Federal Government approves project. |
| Nov 2023 | Financial close is reached on Phase 1 with the SEC undertaking a $245 million equity investment. Equis also expanded its equity investment of Phase 1 to $510 million. This media release also determines the equity share between the SEC and Equis across the three batteries in Phase 1. Construction commences on Phase 1. |
| Nov 2023 | Procurement contracts are announced: - Telsa is awarded the contract for the provision of 444 fully integrated Tesla Megapack Batery Energy Storage Systems. - Three contracts (for the three batteries) for the engineering, procurement, construction, and commissioning for the Balance of Plant scope and BESS installation are awarded to a Samsung C&T and Genus Plus Group Joint Venture. The combined value of the contracts is $200 million. - Ausnet and Lumea are awarded the contracts for connecting transmission infrastructure. |
| Feb 2024 | Financial close was reached on a $400 million in debt financing package for MREH A3. Providing the debt are a syndicate comprising Export Development Canada, Societe General, Standard Chartered, and Westpac. |
