Project Background: An Australian Battery Storage Project

The Templers Battery Energy Storage System (BESS) is a large-scale battery storage project in South Australia. Shanxi Electric Power Construction, a subsidiary of China Energy Engineering Corporation (CEEC), was contracted to deliver the engineering, procurement and construction (EPC) works. CEEC announced an initial project capacity of 138 MW / 330 MWh.

May 2024: Construction Begins

Construction officially began on 24 May 2024. This marked the start of CEEC's contracted work on the Australian battery storage project. For an EPC contractor, breaking ground is only the first step. Equipment procurement, on-site construction, system testing and project handover must follow.

May 2025: Electricity Generation Licence Granted

On 13 May 2025, South Australia's energy regulator granted an electricity generation licence to Templers BESS Project Co Pty Ltd for a 111 MW battery storage system. However, obtaining a licence does not, by itself, prove that construction has been completed or that commercial operations have commenced.

2025: Asset Ownership and Construction Contracts

In 2025, industry media reported that ZEBRE, a joint venture between ZEN Energy and Taiwan-based HD Renewable Energy, acquired the Templers battery asset for approximately AUD 80 million. Two issues must be distinguished: who owns the asset and who is responsible for constructing it. A change in asset ownership does not automatically mean that the rights and obligations under the original EPC contract change in the same way.

July 2025: Construction Completed

ZEN Energy's project information states that construction of the Templers battery was completed in July 2025. This means the project had progressed beyond the contracting and construction stages. However, completing construction is not the same as achieving sustained profitability. A battery project also needs reliable market and operational arrangements to generate revenue through charging, discharging and related electricity market services.

July 2026: ZEN Energy Enters Administration

In July 2026, ZEN Energy entered voluntary administration. Public reporting indicated that wholesale electricity price volatility had placed pressure on the company's viability. At the same time, the Templers battery stopped participating in the electricity market amid changes to its market trading and operational arrangements.

This shows that even after a battery has been built, financial distress, market registration issues or changes to trading arrangements can disrupt commercial operations.

September 2026: Signs of Renewed Activity

On 18 September 2026, electricity market analysis firm WattClarity reported renewed activity at the Templers battery. The project had previously been idle during a transition in its market trading arrangements. This was a positive sign, but the available record alone does not establish that the project had fully returned to normal commercial operations.

What Is the Most Obvious Legal Risk?

In my view, the key issue is whether the project's operational and contractual arrangements can continue smoothly if its operator experiences financial distress after construction has been completed.

First, the contractual responsibilities of each party must be clear. The EPC contractor, project company, electricity market trader and battery operator may perform different functions. If their responsibilities are not properly allocated, disputes may arise when problems occur.

Second, the project must be prepared for the insolvency or external administration of an operator. Can the project company appoint a replacement operator? Can the relevant contracts be terminated or transferred? What regulatory and market procedures must be followed to change the market services provider? These issues should be addressed in advance.

Finally, payment and project acceptance risks must be considered. Completing construction does not necessarily mean that an EPC contractor has received all payments due. The contract may contain acceptance requirements, performance tests, warranties, defect liability obligations and retention payments. If financial difficulties arise, the contractor needs to establish which payments are due, who is responsible for paying them, and what contractual remedies or security arrangements are available.

Conclusion: Overseas Projects Must Be Built and Operated Successfully

The Templers project highlights why Chinese energy companies expanding overseas must look beyond construction deadlines. Contract management, asset ownership, operator risk and local market rules all matter throughout a project's life cycle.

From an international legal perspective, the key question is not simply whether a contract can be signed. It is whether contractual rights, payment obligations and operational continuity remain adequately protected when the project company, operator or another business partner changes.