Australia’s energy transition has reached another critical inflection point with the commissioning of the 125 MW/250 MWh Koorangie Battery Energy Storage System (BESS) in Victoria.
Backed by a 20-year contract with the Australian Energy Market Operator (AEMO), the facility marks a significant shift in how storage systems can deliver both dispatchable capacity and critical system strength services, historically the domain of synchronous fossil-fuel generators.
Located west of Kerang, the Koorangie battery was developed by Sydney-based Edify Energy and constructed by Consolidated Power Projects (CPP). It now operates at full nameplate capacity using 100 Tesla Megapacks equipped with grid-forming inverters in “virtual machine mode.” These inverters replicate the dynamic behaviour of synchronous machines, stabilizing frequency and voltage—functions central to maintaining a reliable grid with high shares of inverter-based renewables.
The technology’s deployment is not incidental. The Murray River region, where the battery is located, has long been a bottleneck for renewable energy export due to limited grid strength. AEMO’s System Support Agreement with the project is intended to address precisely this constraint, providing 125 MW of system strength and unlocking an estimated 300 MW of additional hosting capacity for inverter-based resources such as wind and solar.
While much attention in battery markets has focused on arbitrage and frequency response, the Koorangie project illustrates a maturation in BESS applications. Edify Energy Executive Chairman John Cole described the facility as a dual-purpose asset—simultaneously offering storage and grid-stabilizing services.
The economics behind the project are equally notable. Alongside its system strength role, the battery has secured a 15-year offtake agreement with Shell Energy Australia, ensuring long-term revenue certainty. While the terms of the offtake have not been disclosed, the dual-market model of revenue—contracted system support plus energy market participation—reflects a growing trend in the commercial structure of utility-scale batteries.
The Koorangie BESS is one of 12 projects supported by the Victorian government’s Renewable Energy Zone Fund. Victoria’s legislated storage targets—2.6 GW by 2030 and 6.3 GW by 2035—signal a policy environment increasingly supportive of large-scale storage infrastructure. According to Victorian Energy Minister Lily D’Ambrosio, the project underscores the state’s commitment to replacing fossil-fuel-based system services with clean technology alternatives. “The grid-forming inverters will allow the battery to replace the type of system strength services that were once only provided by fossil-fuel generators,” she said.
Koorangie also builds on Edify’s existing presence in the region, sitting adjacent to its 50 MW Gannawarra solar farm and 25 MW/50 MWh battery. With 12 commercial projects now operational and over 1 GW of solar and storage developed or financed, Edify continues to position itself at the frontier of Australia’s clean energy buildout.
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