Herbert Smith Freehills Advised Victorian State Electricity Commission into Melbourne Renewable Energy Hub Project
Herbert Smith Freehills Advised Victorian State Electricity Commission into Melbourne Renewable Energy Hub Project
Herbert Smith Freehills provided legal counsel to the Victorian State Electricity Commission (SEC) on its $245 million investment in the Melbourne Renewable Energy Hub project (MREH) in partnership with Equis Australia.
The MREH investment marks the SEC’s inaugural venture under the Pioneer Investment Programme, which is set to allocate an initial A$1 billion towards developing 4.5 gigawatts of renewable energy generation and storage projects.
Situated 25 kilometres northwest of Melbourne’s commercial centre, the Melbourne Renewable Energy Hub (MREH) is set to become one of the largest battery energy storage systems (BESS) in the Asia-Pacific region, initially boasting a capacity of 1.6 gigawatt-hours (GWh). Engineered and procured from Tesla, the MREH BESS will play a pivotal role in achieving the Victorian Government’s target of 2.6 GWh of energy storage capacity, a cornerstone of its renewable energy goals. In collaboration with private sector partners and government initiatives, the SEC aims to accelerate Victoria’s transition to a zero-emissions electricity system, with the MREH BESS serving as a key enabler.
To further its commitment to providing affordable and reliable energy to Victorian households, businesses, and industries, the SEC has secured offtake agreements with MREH as part of its investment.
The Herbert Smith Freehills team was spearheaded by partner and Global Co-Head of Energy Nick Baker, along with senior associate Maddison Hardiman, and solicitors Olivia Smedley, Ella McKay, and Thea Stephenson, who handled investment and governance matters. They were assisted by a multidisciplinary team from Herbert Smith Freehills’ Projects, Energy, and Infrastructure Team, including partners Gerard Pike and Alison Dodd, and solicitors Tia Liu, Maria Nomikoudis, and Ben Coombs, who focused on offtake, project development, and financing aspects.
EY acted as the SEC’s commercial and financial advisor and White & Case represented Equis Australia in the investment deal.
“We are delighted to have worked with the SEC on this significant transaction. We look forward to seeing this project progress and working with the SEC throughout the process and in its continued progress toward delivering its Strategic Planm” Herbert Smith Freehills partner Nick Baker said.
This deal further solidifies Herbert Smith Freehills’ position as a leading legal advisor in the Australian energy sector, following its recent involvement in Edify Energy’s sale of the 185MW Koorangie Energy Storage System to Sosteneo SGR Spa, CIMIC Group company Pacific Partnerships’ project financing of the 102 MWac/130MWdc Glenrowan Solar Farm, Funds managed by QIC’s acquisition of a 50 per cent equity interest in Vector’s New Zealand and Australian smart metering business and related joint venture arrangements, Macquarie Asset Management’s Green Investment Group and investment manager InfraRed Capital Partners’ sale of a 60 per cent equity interest in Victoria’s Lal Lal Wind Farms to Igneo Infrastructure Partners, Grok Ventures’ acquisition of the Sun Cable project from administration, and bp’s acquisition of a 40.5 per cent equity interest in the proposed Asian Renewable Energy Hub, where bp will also serve as the project operator in Western Australia’s Pilbara region.
