The company purchased the majority interest from renewable energy and storage company Edify Energy, who originally announced the project in May 2021 and will now retain a minority interest in it.

The yet to be completed Riverina BESS will feature 150MW of Tesla Megapack lithium ion batteries and will be located next to Darlington Point Substation.

The system will add more dispatchable capacity to the state market and will strengthen the region's renewable energy output.

Riverina BESS will also be the seed asset for Federation's Sustainable Australian Real Asset fund.

Edify chief executive John Cole welcomed Federation's stake in BESS, and said the batteries would soon be vital to delivering renewable energy to the Riverina.

"It's our shared view that battery energy storage is vital to advancing the dispatchability and resilience of a renewable power system," Mr Cole said.

"The Edify team acutely understands the need for, and functionality of, crucial inverter-based power system infrastructure.

"We look forward to the successful delivery of the Riverina Battery Project into commercial operation," he added.

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Federation co-founder Stephen Panizza said his company was delighted to be working with a developer like Edify to complete the project.

He also said battery energy storage was crucial for transitioning to renewable energy and for supporting electricity grids.

"Battery energy storage is an excellent asset class," Mr Panizza said.

"The Riverina Battery Projects are quality projects; both technically with the Tesla Megapack, and financially via long term offtake contracts with strong counterparties in Energy Australia and Shell Energy."

Riverina BESS is set for completion during the 2023/2024 summer, with the potential to power more than 46,000 homes for two hours during peak demand.

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