Sosteneo has marked the first anniversary of operations at the Koorangie Energy Storage System in Victoria, highlighting the battery’s role in supporting grid stability and renewable energy integration.
Located in Victoria’s North-West Renewable Energy Zone (REZ), Koorangie Energy Storage System has spent the past year providing system strength services under a 20-year System Support Agreement with VicGrid, helping enhance grid stability and increase renewable hosting capacity across the region.
Sosteneo Partner, Ivor Frischknecht, said the project’s first year of operation demonstrated the value of strategically located energy storage assets.
“The first year of operations at KESS underscores the strength of investing in high-quality, strategically located energy storage assets with long-term contracted revenue,” Frischknecht said.
“By combining robust technical performance with inflation-linked cash flows, KESS exemplifies the type of infrastructure that can deliver resilient, predictable returns over the long term. For our investors, this is about accessing stable yield while participating meaningfully in the energy transition, supported by strong counterparties and a disciplined investment approach.”
The milestone coincides with the formal declaration of Victoria’s North-West REZ, which is expected to host up to 1.7GW of renewable energy capacity, positioning KESS as a key piece of supporting infrastructure for the region’s clean energy transition.
Since entering operation, KESS has supplied energy to its principal offtaker, Shell Energy, while delivering essential grid services through its grid-forming inverter technology. These services are designed to help address network constraints in the region and support a more reliable electricity system.
The project is underpinned by long-term revenue agreements with Shell Energy and VicGrid.
To mark the anniversary, Sosteneo hosted a site visit at KESS for project partners and stakeholders, including representatives from VicGrid, AusNet, Shell Energy, Consolidated Power Projects, Tesla, Traditional Owners, Gannawarra Council and finance partners.
Sosteneo acquired KESS at the ready-to-build stage in 2023 and has overseen the project’s construction and transition into operations. The company specialises in greenfield infrastructure investments that support the energy transition.
