AGL and Neoen have signed a second virtual battery agreement for up to 200MW/400MWh of virtual battery capacity at Neoen’s Western Downs Battery in south-west Queensland.
The ten-year agreement follows a seven-year agreement announced in April 2022 for 70MW of Neoen’s 100MW/200MWh Capital Battery in the ACT.
This financial offtake agreement will allow AGL to mirror the services of a grid-scale battery, providing the ability to virtually charge or discharge the battery at any time, supporting consistency of electricity supply into the grid, and helping to balance AGL’s customer portfolio.
AGL COO, Markus Brokhof, said that the agreement increases AGL’s contracted virtual battery capacity, helping to support the company’s customer base and the transition to renewables.
“We are pleased to sign our second virtual battery agreement with Neoen and build on our partnership. The ability to virtually charge and dispatch this battery increases the number of tools we can use to support our customers’ needs while also supporting electricity supply into the grid,” Mr Brokhof said.
“Virtual battery agreements provide flexibility within our firming portfolio without the requirement to build, operate, and maintain the physical battery.”
Neoen Australia CEO, Jean-Christophe Cheylus, said, “We are delighted to secure this second virtual battery contract with AGL and value their continued trust in our innovation. We would like to thank Tesla, UGL and Powerlink for their commitment and dedication to making both stages of Western Downs Battery a reality. With stage two taking our portfolio of assets in Queensland to over 1GW, we look forward to supporting AGL and contributing to grid reliability in the NEM.”
The service will be backed by the 270MW/540MWh stage one of the Western Downs Battery currently under construction, as well as the new stage two, also sized at 270MW/540MWh. Stage one of the battery is expected to be operational in early 2025 and stage two is expected to be operational by July 2026.
Featured image: Neoen.
