Sosteneo marks one year of operations at Koorangie Energy Storage System, supporting Victoria’s renewable energy future
Melbourne, Australia – 24 June 2026 – Sosteneo, a specialist investment manager focused on greenfield infrastructure for the energy transition and part of Generali Investments, marks the first anniversary of successful operations at the Koorangie Energy Storage System (KESS) in Victoria—highlighting the asset’s performance, strategic importance, and contribution to a more resilient, decarbonised energy system.
Located in Victoria’s North-West Renewable Energy Zone (REZ), KESS has, over the past 12 months, demonstrated the critical role that battery storage plays in balancing Australia’s rapidly evolving energy mix. KESS has a 20-year System Support Agreement with VicGrid to deliver system strength services that enhance grid stability and increase renewable hosting capacity in the North-West region.
The milestone coincides with the formal declaration of the North-West REZ, a region expected to host up to 1.7GW of renewable energy capacity, reinforcing KESS’s strategic positioning at the heart of Victoria’s clean energy transition.
A high-quality asset enabling system stability
Since entering operations, KESS has delivered consistent, high-quality performance—providing energy to its principal offtaker, Shell Energy, and delivering essential services through its grid-forming inverter technology. These capabilities are particularly valuable in a region historically challenged by network constraints.
The project is underpinned by long-term, contracted revenues, including agreements with Shell Energy and VicGrid, ensuring stable and inflation-linked returns—aligned with the long-term investment objectives of Sosteneo’s clients.
Celebrating one year with partners and community
To mark the milestone, Sosteneo hosted a site visit at KESS with key project partners and stakeholders, reflecting the strong collaboration underpinning the project’s success.
Representatives from VicGrid, AusNet, Shell Energy, Consolidated Power Projects (CPP), Tesla, Traditional Owners and the local community, including Gannawarra Council, joined finance partners and Sosteneo on site. The event recognised the collective effort required to deliver and operate critical energy infrastructure.
A First Nations Elder welcomed guests, opening the event with a Welcome to Country and Smoking Ceremony, acknowledging the cultural significance of the land and reinforcing the importance of respectful engagement with Traditional Owners.
Driving long-term value for investors and the energy system
Sosteneo acquired 100% of KESS at the ready-to-build stage in 2023 and has since overseen its construction and transition into operations.
Sosteneo invests on behalf of long-term investors who are seeking stable commercial returns with the defensive attributes of essential infrastructure, whilst making an active contribution to the decarbonisation of the energy system.
Ivor Frischknecht, Partner of Sosteneo, said:
“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. 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.”
Download the press release here.
