The Perth-based Frontier Energy says it has lined up agreements for an injection of equity that will account for nearly one third of the cost of the largest solar-battery hybrid project to be built in Western Australia’s main grid.
After several false starts and different configurations, Frontier is getting ready to give the go-ahead to its Waroona project, now pitched as a 132 megawatt (MW) solar plant and an 81.5 MW (6.9 hour, or 565 MWh) battery energy storage system.
The solar capacity has recently been expanded, largely because of an increase in module capacity from its preferred panel supplier from 610 watts to 660 watts, and the battery has more storage (an extra two hours) in order to comply with the requirements of the capacity credits which underpin the business model for the facility.
Frontier, because it is the only listed Australian company focusing on renewables and storage, provides a rare insight into the financing and business models of these technologies, because of its ASX reporting requirements, and because it seems to like talking about it.
The company has it has received “firm commitments” for $110 million of new equity through a placement to institutions and family business offices. It is conditional on shareholder approval, and landing another near $220 million to cover the $310 million cost of Waroona, plus another $17 million in contingencies.
