ASX-listed renewables developer Genex Power has signed an innovative 20-year deal for Tesla Motors Australia to operate its A$55m–$60m (US$39m–$43m) merchant Bouldercombe Battery in Queensland, while parent Tesla will provide a corporate guarantee for a minimum base revenue for the first eight years.
This guarantee would not be cashed if merchant revenues exceed the base as expected, but it provides certainty to the 50MW/100MWh battery project's lenders for servicing of the debt. Genex is in advanced talks for project finance debt with its “preferred lenders” from other projects in its portfolio.
Tesla will install 40 lithium Megapack 2.0 units and then operate the battery for 20 years with its Autobidder real-time trading and control system, which uses a machine learning algorithm to optimise dispatch behaviour and maximise revenues.
In the first eight years, the majority of the battery’s fully merchant revenues will go to the project company, but Tesla will take a share of the revenues in return for the risk it is taking in providing the guarantee.