AGL and ENGIE Australia have pioneered an innovative firm, and 100 per cent virtual, storage agreement, which will emulate the flexibility of a two-hour battery without a link to any particular physical asset.
Backed by AGL’s portfolio in New South Wales and ENGIE’s trading capability, this five-year deal kicks off in 2027 and will enable financial trading to mimic energy stored in a battery – the first agreement of this kind for ENGIE in Australia.
AGL General Manager Trading and Origination, Simon Sarafian, said that agreements such as this can accelerate AGL’s BESS (battery energy storage system) pipeline, including projects from its 2024 acquisition of Firm Power.
“This is a great example of how financial innovation and energy technology can work together to reshape Australia’s energy landscape,” he said.
ENGIE ANZ Supply Energy Management Head of Origination, Tiburce Blanchy, said that this landmark agreement and a milestone for both ENGIE and the Australian energy landscape.
“Starting in 2027, this purchase of a five-year, derivatives-only agreement with AGL will allow ENGIE to emulate the operational flexibility of a two-hour battery,” Mr Blanchy, said.
“We’re doing this to unlock new ways of delivering firming capacity to our customers, entirely independent of any physical assets.
“This advanced structure strengthens our suite of energy management services, offering more flexible solutions to market counterparts and large energy users in Australia.
“The agreement reflects our ongoing commitment to supporting the energy transition through smarter, more flexible commercial models.”
