Koorangie Energy Storage System begins commercial operations

Koorangie Energy Storage System (KESS) has officially entered full commercial operations.

KESS is a 185MW / 370MWh battery energy storage system located in northwest Victoria, Australia, and 100% owned by Sosteneo on behalf of clients since October 2023. With the capacity to power approximately 350,000 homes for two hours, KESS plays a vital role in addressing longstanding grid constraints in the region. Despite its abundant wind and solar resources, northwest Victoria has faced challenges in exporting renewable energy due to network limitations.

KESS helps overcome these challenges by providing critical grid services such as voltage support and frequency regulation. It also enables the “time-shifting” of clean energy - storing power when it’s abundant and dispatching it during periods of higher demand - thereby enhancing system reliability and supporting the integration of intermittent renewable generation.

KESS is a strong example of Sosteneo’s strategy of investing at the construction-ready stage in infrastructure that delivers long-term, contracted cash flows while solving real-world energy system challenges. KESS was identified by VicGrid and the Australian Energy Market Operator (AEMO) as a priority for development and the project generates revenues for Sosteneo’s clients through a dual contract structure: a system support agreement with AEMO and an offtake agreement with Shell Energy. 

Battery energy storage systems like KESS are a core focus within Sosteneo’s infrastructure portfolio. As renewable energy penetration continues to grow, these assets are increasingly essential to ensuring grid flexibility, stability, and the reliable delivery of clean energy.