NEOEN SA (EPA:NEOEN) - Neoen completes financing for 300 MW Victorian Big Battery in Australia

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25/02/2021 08:35

MEDIA RELEASE

Sydney & Paris, 25 February 2021

Neoen completes financing for 300 MW Victorian Big Battery in Australia

* Neoen has reached financial close on its 300 MW / 450 MWh Victorian Big
Battery, one of the world's largest battery storage projects
* The Victorian Big Battery will be entirely owned by Neoen, with debt
financing provided by the Clean Energy Finance Corporation (CEFC) on behalf of
the Australian Government
* Financing was completed three months after Neoen was awarded by the
Australian Energy Market Operator (AEMO) a 250 MW grid services contract that
will support the investment
* The battery is on track to be operational before the next Australian summer

Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world's leading and
fastest-growing producers of exclusively renewable energy, has completed
financial close on the Victorian Big Battery, a 300 MW / 450 MWh battery
storage facility located near Geelong, in Victoria. The project will be
delivered in collaboration with Tesla and network partner AusNet Services.
Owned and operated by Neoen, the Victorian Big Battery will be one of the
largest batteries in the world, providing stability to Victoria's transmission
network.

Financing of the Victorian Big Battery was completed just three months after
Neoen secured a 250 MW grid services contract with AEMO. The project will be
funded by a combination of equity provided by Neoen and AUD160 million senior
debt facility provided by the Clean Energy Finance Corporation (CEFC), on
behalf of the Australian Government.

Construction has already commenced, providing a well-timed economic boost for
the Geelong region, with the project on track to be delivered before the next
Australian summer. The System Integrity Protection Scheme (SIPS) contract will
run until 2032, unlocking up to 250 MW of additional peak capacity on the
existing Victoria to New South Wales Interconnector (VNI) over the next decade
of Australian summers. Under the contract, the battery will provide an
automatic response in the event of an unexpected network outage, providing AEMO
with an additional resource to ensure grid stability.

Energy storage is a priority technology under the Australian Federal
Government's Technology Investment Roadmap, as an enabler of cost effective and
reliable low emission electricity. The Victorian Big Battery will contribute to
the dispatchable resources needed to underpin the increasing share of renewable
energy that will make up Australia's future energy mix.

Louis de Sambucy, Neoen Australia's Managing Director said: "We are delighted
to announce that the Victorian Big Battery has reached this important financial
milestone. I would like to thank the CEFC for their renewed trust and
commitment towards supporting innovative storage solutions. With the help and
hard work of our partners, Tesla and AusNet Services, we are on track to
deliver this project before the next Australian summer and are looking forward
to playing our part in helping Victoria reach its ambitious target of 50%
renewable energy by 2030."

Ian Learmonth, Clean Energy Finance Corporation CEO said: "The CEFC is excited
to finance the Victorian Big Battery, a world-class example of how
utility-scale batteries can help electricity networks support a higher
penetration of renewable energy. The battery will provide grid support services
when it is under pressure, allowing authorities to increase the capacity of the
VNI by up to 250 MW. With more power flowing between the states, including
during the peak summer season, the battery will contribute to grid reliability
and security. We are delighted to work alongside Neoen and Tesla again, after
helping finance the expansion of the Hornsdale Power Reserve in South Australia
in 2020."

The Hon Lily D'Ambrosio MP, Victorian Minister for Energy, Environment and
Climate Change said: "The Big Battery will help protect Victoria's energy
reliability. It will create jobs and drive down energy prices, as well as
supporting our economic recovery from the coronavirus pandemic."

Xavier Barbaro, Neoen's Chairman and Chief Executive Of?cer concluded: "We
are thrilled to be building our second big battery in Australia. The Victorian
Big Battery once again demonstrates the value of innovative solutions that
Neoen is proud to be pioneering. At 300 MW, it will be one of the largest
batteries in the world, taking our total capacity in operation or under
construction in Australia to over 1.8 GW, and bringing us one step closer to
our global target of 5 GW by the end of 2021."

About Neoen

Neoen is one of the world's leading and fastest growing independent producers
of exclusively renewable energy. With a capacity of more than 4 GW in operation
or under construction, Neoen is a high-growth company. Neoen is notably active
in Australia, Argentina, El Salvador, Finland, France, Ireland, Jamaica,
Mexico, Mozambique, Portugal and Zambia. In particular, Neoen operates France's
most powerful solar farm (300 MWp) in Cestas, and the world's first big battery
(150 MW / 193,5 MWh storage capacity) in Hornsdale, Australia. Neoen is
targeting at least 5 GW capacity in operation or under construction by end of
2021. Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed in Compartment A
of the regulated market of Euronext Paris.

For more information: www.neoen.com

Contact

Neoen
communication@neoen.com

Australian media

Red Havas
neoen@redhavas.com

International media

OPRG Financial
Isabelle Laurent
+33 1 53 32 61 51
Isabelle.laurent@oprgfinancial.fr

Fabrice Baron
+33 1 53 32 61 27
Fabrice.baron@oprgfinancial.fr

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NEOEN SA (EPA:NEOEN) - Neoen completes financing for 300 MW Victorian Big Battery in Australia

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