Victoria's SEC Signs 15-Year Offtake Agreement for 400MW/1.86GWh Energy Storage Project

en.Wedoany.com Reported - On September 17, the State Electricity Commission (SEC), a state-owned energy enterprise of Victoria, Australia, reached an investment and long-term offtake arrangement with Aware Super and Birdwood Energy for the Baranduda Electrical Energy Reserve project. The project has a capacity of 400MW/1.86GWh. Through a 15-year agreement, SEC will secure 50% of the energy storage project's output capacity, while investing up to AUD 43 million to acquire a minority equity stake in the project. The project has achieved financial close, with construction planned to begin in November 2026 and commercial operation expected by late 2028.

The Baranduda project is located in an industrial area near Wodonga in northeastern Victoria, adjacent to the Wodonga Terminal Station, and connects to the 330kV high-voltage interconnector between Victoria and New South Wales. The energy storage system consists of four independent 100MW/465MWh units, each with its own grid connection, providing an overall duration of approximately 4.65 hours. Once operational, the project will be able to provide stored energy equivalent to the electricity demand of more than 200,000 Victorian households during evening peak periods.

Under the agreement, SEC obtains 50% of the project's output rights to support its retail electricity contracts for Victorian government agencies and commercial customers; the remaining 50% of capacity will participate in the Victorian electricity market on a market basis. This 15-year arrangement is therefore not a traditional fixed-volume power purchase agreement, but a long-term offtake arrangement for the output capacity of a large-scale energy storage asset.

The project is being developed by the Birdwood Energy Storage and Transition (BEST) platform, jointly established by Aware Super and Birdwood Energy. SEC is joining the project with a capital investment of up to AUD 43 million, forming an investment structure that brings together government capital, pension fund capital, and a specialized energy storage developer. Aware Super, Birdwood, and SEC confirmed on September 17 that the project has reached financial close.

The Baranduda project previously obtained Victorian planning approval in February 2025 for a 400MW battery energy storage system and related supporting infrastructure, with the project site located near the intersection of Kiewa Valley Highway and Whytes Road. The early development plan adopted a capacity basis of approximately 1.8GWh, and upon entering the final financing and construction stage, the project was officially locked in at 400MW/1.86GWh.

The project is planned to enter the construction phase in November 2026, with the construction period expected to create approximately 150 jobs, and commercial operation planned for late 2028. According to arrangements announced by SEC, once the project is operational, it will also contribute AUD 100,000 annually to a local community fund.