South Australia's Grid Gets a 408 MWh Boost from Vena, e-STORAGE

KITCHENER, ON – December 17, 2025 – In a significant move to reinforce South Australia's position as a global leader in renewable energy, Vena Energy has contracted Canadian Solar's e-STORAGE to deliver a massive 204 MW / 408 MWh battery energy storage system (BESS). The project, dubbed Tailem Bend 3, represents a critical piece of infrastructure designed to stabilize the state's ambitious, renewables-heavy power grid.

Under the agreement, e-STORAGE will provide a full turnkey solution, including the engineering, procurement, and construction of the facility, which will utilize nearly 100 of its advanced SolBank 3.0 battery containers. The project is already under construction in Tailem Bend, a region becoming a pivotal energy hub for the state, with operations targeted to commence in 2027. The deal also includes a five-year service agreement for ongoing system maintenance, ensuring long-term reliability.

A State at the Forefront of a Global Challenge

South Australia's energy journey is a case study in rapid transformation. In just over two decades, the state has shifted from near-total reliance on fossil fuels to a grid where renewable sources, primarily wind and solar, met 75% of its electricity demand in 2023. With a legislated target to achieve 100% net renewable generation by 2027, the state is pushing the boundaries of what's possible for a modern electricity system.

This high penetration of variable renewable energy, however, introduces significant challenges. The intermittent nature of wind and sun creates volatility in supply, while the rise of rooftop solar has led to periods of record-low operational demand, posing complex stability risks for the grid. The Australian Energy Market Operator (AEMO) has consistently highlighted the urgent need for large-scale storage to manage these dynamics, forecasting that storage capacity must triple across the National Electricity Market (NEM) to ensure reliability.

The Tailem Bend 3 BESS is precisely the type of solution regulators and grid operators have called for. By storing vast amounts of energy generated during sunny and windy periods, the battery can dispatch power precisely when it's needed most—during evening demand peaks or when renewable output wanes. This ability to 'firm' intermittent generation is crucial for maintaining a stable frequency and preventing blackouts, a concern that has been top-of-mind since the statewide outage in 2016. Its importance is underscored by its designation as "essential infrastructure" under state law, fast-tracking its development to safeguard the network.

Vena Energy Deepens Its Australian Commitment

The project marks a major expansion for Vena Energy in Australia. The Tailem Bend 3 BESS is the third and most ambitious phase of the company's energy precinct in the region. It builds upon the 127 MWdc Tailem Bend Solar Project (Phase 1) and the Tailem Bend 2 Hybrid Project, which added 118 MWdc of solar and a smaller 41.5 MWh battery.

"The Tailem Bend 3 BESS will be Vena Energy's third energy storage project in Australia, underscoring our continued expansion of grid-supporting storage across the region," said Owen Sela, Head of Australia at Vena Energy. "The project represents a significant milestone in Vena Energy's growth strategy and a major expansion of our energy storage capabilities. This 408 MWh system adds substantial storage capacity that will support South Australia's world-leading renewable energy adoption, while aligning with our commitment to developing utility-scale renewable energy and storage assets that contribute to Australia's clean energy transition."

With this addition, Vena Energy's portfolio of operational or contracted assets in Australia will grow to 732 MW of generation and nearly 600 MWh of storage. This project solidifies the company's role as a key player in Australia’s energy transition, leveraging its extensive Asia-Pacific portfolio, which includes a massive 25 GWh pipeline of battery storage projects.

The Technology Powering the Transition

At the heart of the project is the SolBank 3.0, the latest utility-scale storage solution from e-STORAGE. A subsidiary of solar giant Canadian Solar, e-STORAGE is rapidly becoming a dominant force in the global energy storage market. The Tailem Bend 3 project is its fourth major BESS in Australia, bringing its total footprint in the country to approximately 2 GWh.

Each SolBank 3.0 unit packs over 5 MWh of capacity into a standard 20-foot shipping container, a testament to its high-density design using Lithium Iron Phosphate (LFP) cells—a chemistry favored for its safety and long lifespan. The system incorporates an advanced liquid cooling system that reduces parasitic energy loss by up to 30% and a multi-layered safety protocol that includes smart performance monitoring and sophisticated fire detection and suppression systems, adhering to stringent international standards like NFPA 855.

Colin Parkin, President of e-STORAGE, commented on the company's growing presence: "The Tailem Bend 3 project marks the fourth battery energy storage system e-STORAGE is delivering in Australia. With this addition, our Australian footprint now totals approximately 2 GWh, including projects delivered and currently under construction. We are pleased to support South Australia's energy transition by delivering a reliable, utility-scale storage system that enables greater renewable integration and long-term grid resilience."

This project showcases a broader industry trend where integrated energy companies like Canadian Solar are moving beyond manufacturing solar panels to providing complete, dispatchable clean energy solutions. The ability to offer a turnkey battery system, from manufacturing to long-term maintenance, provides customers like Vena Energy with a streamlined and de-risked path to deployment.

A New Paradigm of On-Demand Clean Power

The technical benefits of the 408 MWh battery extend far beyond simple storage. It will be a dynamic participant in the NEM, providing a suite of crucial grid services. These include Frequency Control Ancillary Services (FCAS), where the battery's near-instantaneous response helps correct grid frequency deviations, a task essential for system-wide stability.

Furthermore, the system will engage in energy arbitrage—charging when wholesale electricity prices are low (typically midday when solar generation is abundant) and selling power back to the grid when prices are high. This not only generates revenue but also helps smooth price volatility for all consumers. By absorbing surplus solar power, it also helps prevent the curtailment of renewable generators, ensuring that more clean energy is utilized.

The project is also expected to have a tangible local economic impact. Vena Energy has committed to prioritizing local employment and procurement for services ranging from electrical work to transport and administration, building on community relationships established during the previous project phases. This approach ensures that the benefits of the multi-million-dollar investment are shared with the Tailem Bend community, creating jobs and supporting regional businesses. As construction ramps up ahead of its 2027 operational date, the Tailem Bend 3 project stands as a powerful symbol of the next phase of the energy transition, where storage transforms intermittent renewables into a reliable, on-demand foundation for a 21st-century grid.